05 September 2018
AO asked for explanation why income of Rs. 70 lakh will not be treated as income form other sources, this is the difference between FMV & Face Value. This is the mistake of CA who have allotted shares in face value without considering FMV during F.Y. 2014-15 against share application money given by a director of a Pvt. Ltd. Company during the F.Y. 2012-13. Now the tax liability will be a huge amount for the assessee (director).
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