Discrepancy in FMV: ITAT Directs AO to Determine by Conducting Thorough Fact-Finding Process, Applying Explanation u/s 56(2)(viib)

The ITAT directed the Assessing Officer (AO) to conduct a thorough fact-finding process to determine the fair market value (FMV) of shares issued under Section 56(2)(viib) of the Income Tax Act. The AO had initially made an adjustment based on discrepancies in FMV but lacked sufficient evidence. The ITAT emphasized the need for a detailed investigation to accurately assess the FMV of shares. This ruling aims to ensure fair valuation and prevent arbitrary assessments in transactions involving the issuance of shares.