Option to choose valuation method under Section 56(2)(viib) read along with Rule 11UA(2) stand solely with the taxpayer.




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Option to choose valuation method under Section 56(2)(viib) read along with Rule 11UA(2) stand Β solely with the taxpayer.

 

Option to choose valuation method under Section 56(2)(viib) read along with Rule 11UA(2) stand Β solely with the taxpayer. The satute clearly does not empower AO to independently evaluate the value of equity shares by adopting 𝐚 different valuation method from the one chosen by the taxpayer ~ π·π‘’π‘™β„Žπ‘– π»π‘–π‘”β„Ž πΆπ‘œπ‘’π‘Ÿπ‘‘ 𝑖𝑛 π‘‘β„Žπ‘’ π‘π‘Žπ‘ π‘’ π‘œπ‘“ π΄π‘”π‘Ÿπ‘Ž π‘ƒπ‘œπ‘Ÿπ‘‘π‘“π‘œπ‘™π‘–π‘œ 𝑃𝑣𝑑. 𝐿𝑑𝑑. 𝑣. π‘ƒπ‘Ÿ. πΆπ‘œπ‘šπ‘šπ‘–π‘ π‘ π‘–π‘œπ‘›π‘’π‘Ÿ π‘œπ‘“ πΌπ‘›π‘π‘œπ‘šπ‘’ π‘‡π‘Žπ‘₯ – 1, & 𝐴𝑁𝑅 (𝐼𝑇𝐴 1385/2018)

The Hon’ble Court relied upon the following judgents for rendering the above decision:

~ Vodafone M-Pesa Limited vs. Principal Commissioner of Income Tax and Others (2018 SCC OnLine Bom 21317)

~ DCIT, Circle 13(2)(2), Mumbai vs. Sodexo Facilities Management Services (ITA No. 2945/Mum/2022)

~ Joint Commissioner of Income Tax vs. M/s MLR Auto Limited (ITA No. 115/Hyd/2021)

~Β Dy. Commissioner of Income Tax 6(2)(1) vs. Credtalpha Alternative ((2022) 94 ITR (Trib) 596)

~ Taaq Music Pvt. Ltd. vs. Income Tax Officer (2020 SCC OnLine ITAT 9482)

The Court further remitted the matter back to the AO for undertaking a fresh valuation in accordance with the DCF method by having the same independently determined by a Valuer appointed.

 

The copy of the order is as under:

 

1712504660504




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