Share Valuation Can’t Be Based on Unrelated Transaction Prices: Delhi HC

PCIT Vs Sanjay Chandra (Delhi High Court) The appeal before the Delhi High Court arose from an order of the Income Tax Appellate Tribunal dated 8 November 2019, whereby the Tribunal deleted an addition of ₹646,80,72,998 made under Section 56(2)(vii)(c) of the Income-tax Act, 1961. The Revenue sought condonation of a 625-day delay in re-filing the appeal, which was allowed. On merits, the Revenue proposed multiple questions of law contending that the Tribunal erred in deleting the addition relating to the alleged difference between the fair market value (FMV) of shares and the consideration p...