Assessee can issue a Corrigendum in case there is an error in arriving at the FMV of shares

Last updated: 24 July 2021
Quick Summary
An assessee company was subject to an addition by the AO under Section 56(2)(viib) of the Income-tax Act due to an error in the fair market value (FMV) of shares issued. The company later provided a corrigendum from the valuer to correct the valuation report. The ITAT ruled that such a corrigendum, issued to rectify an error in calculating the FMV, should not be treated as inadmissible additional evidence. The case was restored to the AO for examination of the full report, including the corrigendum.

Court :
ITAT Bangalore

Brief :
The appeal filed by the assessee is directed against the order dated 21.03.2019 passed by Ld CIT(A)-3, Bengaluru and it relates to the assessment year 2015-16. All the grounds urged by the assessee relate to the addition of Rs.16.20 crores made by the AO u/s 56(2)(viib) of the Income-tax Act,1961 ['the Act' for short].

Citation :
ITA No.882/Bang/2019

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1 Year PLAN
1999
(Excl. of GST ₹359)

BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)

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