Valuation of unlisted shares should be on the basis of audited balance sheet
Last updated: 14 February 2023
Court :
ITAT New Delhi Bench
Brief :
Generally companies in which public are not substantially interested issue shares at a price more than Face Value of Shares or more than Fair Market Value of shares and keep the proceeds above normal value of shares in Share Premium Account. If company is unable to provide satisfactory proof or answer or proof of such high valuation made is not satisfactory in the view of AO, then the difference between the Issue Price and FMV is treated as Income of the Company. The FMV is calculated on the basis of Audited and adopted Balance Sheet and PL of the Company.
Citation :
ITA NO. 6353/DEL/2018 [A.Y. 2014-15]
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FCS Deepak Pratap Singh
Published in Income Tax
Views : 1221
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