Addition of Rs. 21,42,857 u/s 56(2)(vii)(b)(ii): ITAT Allows Appeal for Failure to Refer Valuation to DVO

The ITAT allowed an appeal related to an addition under Section 56(2)(viib), ruling that the failure to refer the valuation to the Departmental Valuation Officer (DVO) was improper. The case involved a taxpayer's claim regarding the fair market value of shares issued to a related party. The ITAT ruled that the tax authorities should have referred the matter to the DVO for proper valuation. This ruling emphasizes the importance of seeking an expert valuation in such cases, ensuring that tax assessments are based on accurate market values.