Valuation of unquoted shares
This query is : Resolved
15 December 2008
A pvt ltd. co sold some shares of another co. at par.No profit or loss has been accounted for as both purchase and sale were at par and the carrying cost of such shares in the balance sheet is also at par say Rs.10/-.But at the time of assessment the assessing officer accounted for the difference between the intrinsic value and par value as Income benefit u/s.28(iv) of the act.According to A.O. assessee is engaged in the business of share trading and investment,hence by dealing in shares below its actual worth, the assessee is in receipt of benefit in real terms.Is the A.O's contention right? Can I get any case law in support of the assessee and against the A.O.?
16 December 2008
Namrata
In my opinion, at the outset i can say AO's stand is right. Bcz intrinsic value matters in this case. Wl serch for case law and update u if possible.
rgds
Vivek
In my opinion, at the outset i can say AO's stand is right. Bcz intrinsic value matters in this case. Wl serch for case law and update u if possible.
rgds
Vivek
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