issue of share at premium

Pawan..

ITO shud concern wid only those matters which can be added to the income.. I dont think that he can ask for Premium Justification.. but i know that we cant object him practically..

So if u don't get any case law on this, then i suggest u to prepare an statement in which projection of future profit is incorpoarted n set ur EPS in such a way so that EPS*P/E Ratio will be equal to Rs 100 approx.. this way u can justify him...

I think, premium justification is just a tool for him for negotiation (i think u get my point)..

Adarsh