Chamundi Extrusions Pvt. Ltd., , Howrah V. ACIT, Circle - 36, Kolkata

ITA 2695/KOL/2018

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 6341 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 11 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 30-12-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Sale consideration of property below Jantri Value; Capital asset; Fair market value; Valuation report
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘A’ BENCH, KOLKATA {VIRTUAL COURT HEARING} (Before Shri P.M. Jagtap, Hon’ble Vice-President, KZ & Shri Aby T. Varkey, Hon’ble Judicial Member) ITA No. 2695/Kol/2018 Assessment Year: 2014-15 Chamundi Extrusions Pvt. Ltd......................................................................................................Appellant Village – Vyer Chak Ranihati Amta Road P.O. – Jala Biswanathpur Near Gabberia Hospital Howrah – 711 322 [PAN : AAECC 2195 F] Vs. Asstt. Commissioner of Income Tax, Circle-36, Kolkata...................................................Respondent Appearances by: Shri Aditya Madhogarhia, FCA, appeared on behalf of the assessee. Shri P.P. Barman, Addl. CIT, D/R, appearing on behalf of the Revenue. Date of concluding the hearing : November 29 th , 2021 Date of pronouncing the order : December 15 th , 2021 ORDER Per P.M. Jagtap, Vice-President, KZ :- This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals) – 5, Kolkata, (hereinafter the ‘ld. CIT(A)’), dt. 28/09/2018 and the solitary issue involved therein relates to the addition of Rs.20,00,000/- made by the Assessing Officer and confirmed by the ld. CIT(A) being the difference between the fair market value (FMV) of the shares and the value actually received by the assessee company u/s 56(2)(viib) of the Income Tax Act, 1961 (hereinafter ‘the Act’) read with Rule 11UA of the Income Tax Rules, 1962 (hereinafter ‘the Rules’). 2. The assessee in the present case is a company which is engaged in the business of manufacturing and sale of laminated rolls and tarpaulin. The return of income for the year under consideration was filed by the assessee on 21/11/2014 declaring a loss of Rs.59,56,603/-. During the year under consideration, the assessee company had issued 10,00,000 equity shares (having face value of Re. 1/- per shares) @ Rs.10/- per share. The value of each share so sold was worked out by the Assessing Officer by applying Rule 11UA of the Rules @ Rs.8/- per share and difference between the sale consideration of 10,00,000 shares received by the assessee and the FMV determined by him by applying Rule 11UA amounting to Rs.20,00,000/- was added by the Assessing Officer to the total income of the assessee u/s 56(2)(viib) of the Act in the assessment completed u/s 143(3) of the Act vide order dt. 27/12/2016. 3. The addition of Rs.20,00,000/ r.w.r. 11UA was challenged by the assessee in t the following contention was mainly raised on behalf of the assessee during the course of appellate proceedings before the “Thus as per Rule 11UA , the valuation is to be shares were allotted on 15.07.2013. The audited balance sheet for the year March, 2013 was prepared on 25.07.2013.The last available Balance Sheet as on the date of allotment was for the year ended 31.03.2012 and as 11UA the balance sheet as at 31.03.2012should have been the basis of calculation of the Fair Value. However, the Assessing Officer drew up the valuation based on the Balance Sheet as on 31.03.2013, which on the date of The Assessing Officer was wrong in taking a valuation not allowable in law only with the intension of rejecting the valuation as provided by the assessee and making an addition based on the deeming provision and th section 56(2)(viib) read along with Rule be deleted.” 4. The ld. CIT(A) did not find merit in the submission made on behalf of the assessee and proceeded to Assessing Officer for the following reasons given in his impugned order: “I have considered the submission of the appellant and perused the relevant assessment records. The only issue in this appeal is t Rule, 1962. The AO had valued the shares on the basis of the balance sheet as on 31.03.2013. The A/R of the appellant in his submission has submitted that the shares were allotted on 15.07.2013. The audited on 25.07.2013. However, the Assessing Officer drew up the valuation based on the Balance Sheet as on 31.03.2013, which on the date of allotment was not available or prepared. The assessee valued the share Assessing Officer did not take cognizance of the valuation report provided by the assessee and calculated the value as on as on the date of allotment and as such could not have been considered. There is no merit in the submission of the appellant. The method of valuation of unquoted shares is laid down in Rule 11UA(1)(c) which reads as follows: "the fair market value of unquoted shares and securities other than equity shares in a company which are not listed in any recognized stock exchange shall be estimated to be price it would fetch if sold in the open market on and he assessee may be obtain a report from a merchant banker or an accountant in respect of such valuation." Reference may be made to definition of valuation date as per Rule 11U(j) as under: “’Valuation date’ means the date on which case may be, is received by the assessee.” 2 Chamundi Extrusions Pvt. Ltd The addition of Rs.20,00,000/- made by the Assessing Officer u/s 56(2)(viib) r.w.r. 11UA was challenged by the assessee in the appeal filed before the ld. CIT(A) and the following contention was mainly raised on behalf of the assessee during the course of appellate proceedings before the ld. CIT(A) in support of its contentions: Thus as per Rule 11UA , the valuation is to be based on last Audited Balance sheet. The shares were allotted on 15.07.2013. The audited balance sheet for the year March, 2013 was prepared on 25.07.2013.The last available Balance Sheet as on the date of allotment was for the year ended 31.03.2012 and as such going by the provisions of Rule 11UA the balance sheet as at 31.03.2012should have been the basis of calculation of the Fair Value. However, the Assessing Officer drew up the valuation based on the Balance Sheet as on 31.03.2013, which on the date of allotment was not available or prepared. The Assessing Officer was wrong in taking a valuation not allowable in law only with the intension of rejecting the valuation as provided by the assessee and making an addition based on the deeming provision and the same is based on incorrect i iib) read along with Rule11UA and as such the addition made may kindly The ld. CIT(A) did not find merit in the submission made on behalf of the assessee and proceeded to confirm the addition of Rs.20,00,000/ Assessing Officer for the following reasons given in his impugned order: I have considered the submission of the appellant and perused the relevant assessment records. The only issue in this appeal is the valuation of share under Rule 11UA of the I T Rule, 1962. The AO had valued the shares on the basis of the balance sheet as on 31.03.2013. The A/R of the appellant in his submission has submitted that the shares were allotted on 15.07.2013. The audited balance sheet for the year March, 2013 was prepared on 25.07.2013. However, the Assessing Officer drew up the valuation based on the Balance Sheet as on 31.03.2013, which on the date of allotment was not available or prepared. The assessee valued the shares on the basis of Balance Sheet as on However he claims that Assessing Officer did not take cognizance of the valuation report provided by the assessee and calculated the value as on despite of the fact that such Balance Sheet was not available as on the date of allotment and as such could not have been considered. There is no merit in the submission of the appellant. The method of valuation of unquoted shares is laid )(c) which reads as follows: "the fair market value of unquoted shares and securities other than equity shares in a company which are not listed in any recognized stock exchange shall be estimated to be price it would fetch if sold in the open market on and he assessee may be obtain a report from a merchant banker or an accountant in respect of such valuation." Reference may be made to definition of valuation date as per Rule 11U(j) as under: “’Valuation date’ means the date on which the property or consideration, as the case may be, is received by the assessee.” ITA No. 2695/Kol/2018 Assessment Year: 2014-15 Chamundi Extrusions Pvt. Ltd. made by the Assessing Officer u/s 56(2)(viib) he appeal filed before the ld. CIT(A) and the following contention was mainly raised on behalf of the assessee during the course contentions:- based on last Audited Balance sheet. The shares were allotted on 15.07.2013. The audited balance sheet for the year March, 2013 was prepared on 25.07.2013.The last available Balance Sheet as on the date of such going by the provisions of Rule 11UA the balance sheet as at 31.03.2012should have been the basis of calculation of the Fair Value. However, the Assessing Officer drew up the valuation based on the Balance allotment was not available or prepared. The Assessing Officer was wrong in taking a valuation not allowable in law only with the intension of rejecting the valuation as provided by the assessee and making an addition e same is based on incorrect interpretation of UA and as such the addition made may kindly The ld. CIT(A) did not find merit in the submission made on behalf of the confirm the addition of Rs.20,00,000/- made by the Assessing Officer for the following reasons given in his impugned order:- I have considered the submission of the appellant and perused the relevant assessment he valuation of share under Rule 11UA of the I T Rule, 1962. The AO had valued the shares on the basis of the balance sheet as on 31.03.2013. The A/R of the appellant in his submission has submitted that the shares were balance sheet for the year March, 2013 was prepared on 25.07.2013. However, the Assessing Officer drew up the valuation based on the Balance Sheet as on 31.03.2013, which on the date of allotment was not available or prepared. The However he claims that Assessing Officer did not take cognizance of the valuation report provided by the assessee despite of the fact that such Balance Sheet was not available as on the date of allotment and as such could not have been considered. There is no merit in the submission of the appellant. The method of valuation of unquoted shares is laid "the fair market value of unquoted shares and securities other than equity shares in a company which are not listed in any recognized stock exchange shall be estimated to be price it would fetch if sold in the open market on the valuation date and he assessee may be obtain a report from a merchant banker or an accountant Reference may be made to definition of valuation date as per Rule 11U(j) as under:- the property or consideration, as the The definition of property under explanation (d) to section 56(1) includes shares and securities. Therefore, the date of valuation of shares for which fair market value has t computed as per on date of transfer or allotment of the shares. This view is fortified by Rule 11UAA which was introduced by the Income Notification G.S.R. 865(E) dated 12th July, 2017 clearly states that "for the purpose of section 50CAFMV of unquoted shares shall be determined in the manner provided in Rule case may be. Valuation date for the purpose of Rule 11U & 11UA shall which the capital asset, being shares of a company other than unquoted shares referred in section 50CA is transferred." Though the amendment came to effect from 01.04.2018, from the definition of valuation date, it is the clear that the in take the date of transfer as the valuation date. As discussed above, it is clear that the date of valuation of unquoted shares would be date the shares transferred or allotted. In this case, the shares were allotted on 15/ Therefore, it would be reasonable to assume that fair market value as calculated by the AO on 31.03.2013 can be safely taken to be fair market value of unquoted shares instead of the fair market value as on 31.03.2012 taken by the appellant. The a is confirmed.” Aggrieved by the order of the ld. CIT(A) the assessee has preferred this appeal before the Tribunal. 5. We have heard the arguments of both the sides and also perused the relevant material available on record. reiterated the contention raised before the ld. CIT(A) that the balance sheet of the assessee company as on 31/03/2013 having been the allotment of shares on 15/0 should have been made on the basis of the last balance sheet of the assessee company as on 31/03/2012 being the last balance sheet availa contended that the Assessing Officer as well as the ld. CIT(A), however, made the valuation of shares on the basis of balance sheet of the assessee as on 31/03/2013 which was audited on 25/07/2013 and was not available on the date of allotment of shares i.e., on 15/07/2013. In sup of ‘balance sheet’ given for the purpose of Rule 11UA in Clause (b) of Rule 11U which reads as under:- “11U. For the purposes of this rule and rule 11UA, (a) .............. (b) “balance-sheet”, in relation (i) for the purposes of sub (including the notes annexed thereto and forming part of the accounts) as drawn up on the 3 Chamundi Extrusions Pvt. Ltd The definition of property under explanation (d) to section 56(1) includes shares and securities. Therefore, the date of valuation of shares for which fair market value has t computed as per on date of transfer or allotment of the shares. This view is fortified by Rule 11UAA which was introduced by the Income-tax (20th Amendment) Rules, 2017 Notification G.S.R. 865(E) dated 12th July, 2017 - w.e.f. the 1st day of Ap clearly states that "for the purpose of section 50CAFMV of unquoted shares shall be determined in the manner provided in Rule 11UA(1)(c)(b) or Rule 11UA(1 case may be. Valuation date for the purpose of Rule 11U & 11UA shall which the capital asset, being shares of a company other than unquoted shares referred in section 50CA is transferred." Though the amendment came to effect from 01.04.2018, from the definition of valuation date, it is the clear that the intention of the legislature was to take the date of transfer as the valuation date. As discussed above, it is clear that the date of valuation of unquoted shares would be date the shares transferred or allotted. In this case, the shares were allotted on 15/ Therefore, it would be reasonable to assume that fair market value as calculated by the AO on 31.03.2013 can be safely taken to be fair market value of unquoted shares instead of the fair market value as on 31.03.2012 taken by the appellant. The addition Aggrieved by the order of the ld. CIT(A) the assessee has preferred this appeal We have heard the arguments of both the sides and also perused the relevant material available on record. Before us, the ld. Counsel for the assessee reiterated the contention raised before the ld. CIT(A) that the balance sheet of the assessee company as on 31/03/2013 having been audited only on 25/07/2013 i.e., after the allotment of shares on 15/07/2013, the valuation of shares by applying Rule 11UA should have been made on the basis of the last balance sheet of the assessee company as on 31/03/2012 being the last balance sheet available as on the date of allotment ing Officer as well as the ld. CIT(A), however, made the valuation of shares on the basis of balance sheet of the assessee as on 31/03/2013 which was audited on 25/07/2013 and was not available on the date of allotment of shares i.e., on 15/07/2013. In support of this contention, he has relied on the definition of ‘balance sheet’ given for the purpose of Rule 11UA in Clause (b) of Rule 11U which For the purposes of this rule and rule 11UA,— sheet”, in relation to any company, means,— (i) for the purposes of sub-rule (2) of rule 11UA, the balance-sheet of such company (including the notes annexed thereto and forming part of the accounts) as drawn up on the ITA No. 2695/Kol/2018 Assessment Year: 2014-15 Chamundi Extrusions Pvt. Ltd. The definition of property under explanation (d) to section 56(1) includes shares and securities. Therefore, the date of valuation of shares for which fair market value has to be computed as per on date of transfer or allotment of the shares. This view is fortified by Rule tax (20th Amendment) Rules, 2017 - CBDT w.e.f. the 1st day of April, 2018 which clearly states that "for the purpose of section 50CAFMV of unquoted shares shall be 11UA(1)(c)(c) as the case may be. Valuation date for the purpose of Rule 11U & 11UA shall mean the date on which the capital asset, being shares of a company other than unquoted shares referred in section 50CA is transferred." Though the amendment came to effect from 01.04.2018, from tention of the legislature was to As discussed above, it is clear that the date of valuation of unquoted shares would be date the shares transferred or allotted. In this case, the shares were allotted on 15/07/2013. Therefore, it would be reasonable to assume that fair market value as calculated by the AO on 31.03.2013 can be safely taken to be fair market value of unquoted shares instead of the ddition of Rs.20,00,000/- Aggrieved by the order of the ld. CIT(A) the assessee has preferred this appeal We have heard the arguments of both the sides and also perused the relevant the ld. Counsel for the assessee has mainly reiterated the contention raised before the ld. CIT(A) that the balance sheet of the only on 25/07/2013 i.e., after 7/2013, the valuation of shares by applying Rule 11UA should have been made on the basis of the last balance sheet of the assessee company as ble as on the date of allotment. He has ing Officer as well as the ld. CIT(A), however, made the valuation of shares on the basis of balance sheet of the assessee as on 31/03/2013 which was audited on 25/07/2013 and was not available on the date of allotment of port of this contention, he has relied on the definition of ‘balance sheet’ given for the purpose of Rule 11UA in Clause (b) of Rule 11U which sheet of such company (including the notes annexed thereto and forming part of the accounts) as drawn up on the valuation date which has been audited by the auditor of section 224 of the Companies Act, 1956 (1 of 1956) and where the balance valuation date is not drawn up, the balance forming part of the accounts) drawn up as on a date date which has been approved and adopted in the annual gene shareholders of the company; (ii) in any other case, the balance thereto and forming part of the accounts) as drawn up on the valuation date which has been audited by the auditor appointed under section 224 of the Companies Act, 1956 (1 of 1956);]” 6. The ld. Counsel for the assessee assessee company as on the date of valuation date i.e., 15/07/2013 when the shares were allotted had not been drawn up and since the balance sheet as on 31/03/2013 not been approved and adopted in the Annual General Meeting (AGM) of the shareholders of the company on 31/03/2012 was available as the balance sheet drawn up as on a date immediately preceding the valuation date and the valuation of shares should have been done on the basis of the said balance sheet and not on the balance sheet as on 31/03/2012. 7. We are unable to accept th shares having been allotted by the assessee company on 15/07/2013, the valuation date was 15/07/2013 and since the up on the said valuation date, the balance sheet drawn up as on a date immediately preceding the valuation date shareholders of the company valuation as per Rule 11UA read with Clause (b) of Rule 11U. In the present case, the last balance sheet of the assessee company was drawn as on 31/03/2013 immediately preceding the valuation dat 25/07/2013 i.e., after the date of valuation i.e., 15/07/2013 and had been approved and adopted in the AGM of the shareholders of the company held after the date of valuation, the ld. Counsel for the assessee has contend purpose of valuation of shares under Rule 11UA and the balance sheet as on 31/03/2012 should be taken into consideration. It is nothing either in Rule 11UA or even (b)(i) of Rule 11UA to show that the balance sheet drawn as on the date immediately preceding the valuation date should have been approved and adopted in the AGM of shareholders of the company before the date of valuation. 4 Chamundi Extrusions Pvt. Ltd valuation date which has been audited by the auditor of the company appointed under section 224 of the Companies Act, 1956 (1 of 1956) and where the balance valuation date is not drawn up, the balance-sheet (including the notes annexed thereto and forming part of the accounts) drawn up as on a date immediately preceding the valuation date which has been approved and adopted in the annual gene shareholders of the company; and (ii) in any other case, the balance-sheet of such company (including the notes annexed part of the accounts) as drawn up on the valuation date which has been audited by the auditor appointed under section 224 of the Companies Act, 1956 (1 of The ld. Counsel for the assessee has contended that the balance sheet of the pany as on the date of valuation date i.e., 15/07/2013 when the shares been drawn up and since the balance sheet as on 31/03/2013 not been approved and adopted in the Annual General Meeting (AGM) of the shareholders of the company up to the date of valuation, the balance sheet as drawn up on 31/03/2012 was available as the balance sheet drawn up as on a date immediately preceding the valuation date and the valuation of shares should have been done on the heet and not on the balance sheet as on 31/03/2012. We are unable to accept the contention of the ld. Counsel for the assessee. The shares having been allotted by the assessee company on 15/07/2013, the valuation date 5/07/2013 and since the balance sheet of the assessee company was not drawn up on the said valuation date, the balance sheet drawn up as on a date immediately preceding the valuation date, which has been approved and adopted in the AGM of the shareholders of the company, was to be taken as the balance sheet for the purpose of valuation as per Rule 11UA read with Clause (b) of Rule 11U. In the present case, the last balance sheet of the assessee company was drawn as on 31/03/2013 immediately preceding the valuation date but since the same was audited on 25/07/2013 i.e., after the date of valuation i.e., 15/07/2013 and had been approved and adopted in the AGM of the shareholders of the company held after the date of valuation, the ld. Counsel for the assessee has contended that the same cannot be taken for the purpose of valuation of shares under Rule 11UA and the balance sheet as on 31/03/2012 should be taken into consideration. It is however observed that there is nothing either in Rule 11UA or even in the definition of ‘balance sheet’ given in Clause (b)(i) of Rule 11UA to show that the balance sheet drawn as on the date immediately preceding the valuation date should have been approved and adopted in the AGM of shareholders of the company before the date of valuation. It, therefore, follows that even ITA No. 2695/Kol/2018 Assessment Year: 2014-15 Chamundi Extrusions Pvt. Ltd. the company appointed under section 224 of the Companies Act, 1956 (1 of 1956) and where the balance-sheet on the sheet (including the notes annexed thereto and immediately preceding the valuation date which has been approved and adopted in the annual general meeting of the sheet of such company (including the notes annexed part of the accounts) as drawn up on the valuation date which has been audited by the auditor appointed under section 224 of the Companies Act, 1956 (1 of contended that the balance sheet of the pany as on the date of valuation date i.e., 15/07/2013 when the shares been drawn up and since the balance sheet as on 31/03/2013 was not been approved and adopted in the Annual General Meeting (AGM) of the up to the date of valuation, the balance sheet as drawn up on 31/03/2012 was available as the balance sheet drawn up as on a date immediately preceding the valuation date and the valuation of shares should have been done on the heet and not on the balance sheet as on 31/03/2012. contention of the ld. Counsel for the assessee. The shares having been allotted by the assessee company on 15/07/2013, the valuation date balance sheet of the assessee company was not drawn up on the said valuation date, the balance sheet drawn up as on a date immediately which has been approved and adopted in the AGM of the e taken as the balance sheet for the purpose of valuation as per Rule 11UA read with Clause (b) of Rule 11U. In the present case, the last balance sheet of the assessee company was drawn as on 31/03/2013 being a date e but since the same was audited on 25/07/2013 i.e., after the date of valuation i.e., 15/07/2013 and had been approved and adopted in the AGM of the shareholders of the company held after the date of valuation, ed that the same cannot be taken for the purpose of valuation of shares under Rule 11UA and the balance sheet as on observed that there is ‘balance sheet’ given in Clause (b)(i) of Rule 11UA to show that the balance sheet drawn as on the date immediately preceding the valuation date should have been approved and adopted in the AGM of It, therefore, follows that even if the balance sheet as drawn up on 31/03/2013 adopted in the AGM of the shareholders of the company after the date of valuation, the same being the balance sheet drawn up as on the date immed valuation date should be taken into consideration for the purpose of determining the FMV of the shares sold by the assessee on 15/07/2013. Even otherwise, the contention of the ld. Counsel for the assessee that the FMV of the shares as have been determined on the basis of balance sheet drawn up 31/03/2013 cannot be accepted not being either fair or proper. Moreover, the definition of ‘balance sheet’ given in Clause (b) of Rule11U for the pur 11UA contemplates the balance sheet of the company as drawn up on the valuation date which has been audited by the auditor of the company clearly suggests or indicates that the balance sheet referred to therein need not be avai simply because the balance sheet as drawn up on the valuation date and audited by the auditor of the company cannot be practically available as on the date of valuation itself. We are, therefore, of the considered view that t 31/03/2013 was rightly taken by the Assessing Officer as well as the ld. CIT(A) for the determination of the FMV of the shares sold by the assessee on 15/07/2013 as per Clause (b) of Rule11U for the purpose of sub sheet drawn up immediately preceding the valuation date uphold the impugned order of the ld. CIT(A) on this issue and dismiss this appeal of the assessee. 8. In the result, appeal of the assess Order pronounce in the Court on Sd/- [Aby T. Varkey] Judicial Member Dated: 15.12.2021 {SC SPS} 5 Chamundi Extrusions Pvt. Ltd if the balance sheet as drawn up on 31/03/2013 had been audited, approved and adopted in the AGM of the shareholders of the company after the date of valuation, the same being the balance sheet drawn up as on the date immediately preceding the valuation date should be taken into consideration for the purpose of determining the FMV of the shares sold by the assessee on 15/07/2013. Even otherwise, the contention of the ld. Counsel for the assessee that the FMV of the shares as on 15/07/2013 should have been determined on the basis of balance sheet drawn up on 31/03/2012 instead of 31/03/2013 cannot be accepted not being either fair or proper. Moreover, the definition of ‘balance sheet’ given in Clause (b) of Rule11U for the purpose of sub 11UA contemplates the balance sheet of the company as drawn up on the valuation date by the auditor of the company clearly suggests or indicates that the balance sheet referred to therein need not be available on the date of valuation simply because the balance sheet as drawn up on the valuation date and audited by the auditor of the company cannot be practically available as on the date of valuation itself. We are, therefore, of the considered view that the balance sheet drawn up as on 31/03/2013 was rightly taken by the Assessing Officer as well as the ld. CIT(A) for the determination of the FMV of the shares sold by the assessee on 15/07/2013 as per Clause (b) of Rule11U for the purpose of sub-rule (2) of Rule 11UA being the balance sheet drawn up immediately preceding the valuation date. In that view of the matter, we uphold the impugned order of the ld. CIT(A) on this issue and dismiss this appeal of the In the result, appeal of the assessee is dismissed. Order pronounce in the Court on the 15 th day of December Judicial Member ITA No. 2695/Kol/2018 Assessment Year: 2014-15 Chamundi Extrusions Pvt. Ltd. had been audited, approved and adopted in the AGM of the shareholders of the company after the date of valuation, the iately preceding the valuation date should be taken into consideration for the purpose of determining the FMV of the shares sold by the assessee on 15/07/2013. Even otherwise, the contention on 15/07/2013 should 31/03/2012 instead of 31/03/2013 cannot be accepted not being either fair or proper. Moreover, the definition pose of sub-rule (2) of Rule 11UA contemplates the balance sheet of the company as drawn up on the valuation date by the auditor of the company clearly suggests or indicates that lable on the date of valuation simply because the balance sheet as drawn up on the valuation date and audited by the auditor of the company cannot be practically available as on the date of valuation itself. he balance sheet drawn up as on 31/03/2013 was rightly taken by the Assessing Officer as well as the ld. CIT(A) for the determination of the FMV of the shares sold by the assessee on 15/07/2013 as per f Rule 11UA being the balance . In that view of the matter, we uphold the impugned order of the ld. CIT(A) on this issue and dismiss this appeal of the ember, 2021. Sd/- [P.M. Jagtap] Vice-President Copy of the order forwarded to: 1. Chamundi Extrusions Pvt. Ltd Village – Vyer Chak Ranihati Amta Road P.O. – Jala Biswanathpur Near Gabberia Hospital Howrah – 711 322 2. Asstt. Commissioner of Income Tax, Circle 3. CIT(A)- 4. CIT- , 5. CIT(DR), Kolkata Benches, Kolkata. 6 Chamundi Extrusions Pvt. Ltd Chamundi Extrusions Pvt. Ltd Asstt. Commissioner of Income Tax, Circle-36, Kolkata . CIT(DR), Kolkata Benches, Kolkata. Assistant Registrar/DDO ITAT, Kolkata Benches ITA No. 2695/Kol/2018 Assessment Year: 2014-15 Chamundi Extrusions Pvt. Ltd. True copy By order Assistant Registrar/DDO ITAT, Kolkata Benches