Share Valuation Must Follow Rule 11UA, Not Isolated Third Party Transactions

Ramesh Chandra Vs DCIT (Delhi High Court) The Delhi High Court quashed reassessment proceedings initiated under Section 148 of the Income-tax Act after finding that they were based solely on material already examined and rejected in earlier appellate proceedings. The reassessment notices relied on an alleged undervaluation of shares derived from a single transaction value of ₹179.73 per share. However, this very transaction had previously been scrutinised by the Income Tax Appellate Tribunal and upheld by the High Court in an earlier appeal, where it was held that share valuation must be det...