Share Valuation Under Section 56(2)(viia) Set Aside for Mechanical Approach

Brawny Nivesh Pvt. Ltd. Vs ACIT (ITAT Delhi) 56(2)(viia) Valuation Can’t Be Mechanical; Sundry Debtors Can’t Be Added on Presumptions: ITAT Delhi Grants Major Relief Delhi ITAT partly allowed the Assessee’s appeal, granting substantial relief on additions made u/s 56(2)(viia) and on account of alleged fictitious sundry debtors. On the issue of addition u/s 56(2)(viia) relating to purchase of unquoted shares of Gain E-Commerce Pvt. Ltd. and Kanti Commercial Pvt. Ltd., the Tribunal noted that the Assessee had furnished valuation reports as per Rule 11UA after excluding assets shown in the ...