M/S. UNIWRAP SYSTEMS PVT. LTD.,,VADODARA vs. THE ITO, WARD-2(1)(4)., VADODARA

In ground no.2, it has pleaded that the ld.CIT(A) has erred in confirming the disallowance of depreciation amounting to Rs.4,190/-. The ld.counsel for the assessee did not press this ground of appeal, hence, it is dismissed.

In ground no.1, the assessee has taken three sub-grounds. It has pleaded that the ld.CIT(A) has erred in confirming the addition of Rs.2,42,640/- under section 56(2)(viib) of the Income Tax Act, 1961.

At the time of hearing, the ld.counsel for the assessee has placed on record a chart showing details of addition of share premium. This chart reads as under: “Sub : Chart showing Details of Addition of Shares Premium 1) Shares Issued 6000 2) Face Value Rs.10 per share 3) Share Premium Rs.900 per share 4) Fair Market Value of Premium as per Valuation Report 859/56 per share 5) Difference on account of ‘Rounding off’ 40/44 6) Difference on Rounding off is 4.70% 7) Difference for 6000 shares Rs.2,42,640/- 8) Added by ITO in Asst. Order Rs.2,42,640/- 9) Confirmed by CIT(A) + Rs.2,42,640/- 10) Appeal to Hon. ITAT Note: 1) Rounding off is a Common Method followed in Commercial Practice. 2) Even Income Tax Department follows "Rounding off in calculation Tax payable. 3) Definition of "Rounding off is supported by Mathematics Dictionary. 4) Judgements relied. a) Microfirm Capital (P) Ltd. vs. Dy.CIT (2018) 168 ITD 301/89 taxmann.com 23 (Kolkata-Trib) b) Rahul Constructions vs. Dy.CIT (2010) 38 DTR (Pune) (Trib) 19

The ld.counsel for the assessee at the very outset submitted that fair market value of the premium charged by the assessee be taken as per valuation report i.e. Rs.859.56 per share. The limited contention was that this value be adopted at Rs.860/- per share, because the concept of rounding demonstrated that such estimated opinion be taken to nearest figure. If 0.44 is being added in the value worked out on the basis of valuation, then this value be taken at Rs.860/- per share. On the other

A perusal of the above would indicate that the AO made the addition of Rs.2,42,640/- by multiplying 6000 shares with Rs.40.44. This valuation for determining this FMV on premium at Rs.859.56 is based on the basis of Chartered Accountant’s report obtained by the assessee itself. The limited prayer made by the assessee at time of hearing is that this figure should be adopted as a round figure i.e. Rs.860/-. It hardly makes any difference because Rs.0.44 multiplied by 6000 comes to 2640 only. If this amount is reduced from Rs.2,42,640/-, it does not make much difference. Therefore, considering this smallness of the amount, we do not wish to change working made by the AO on account of adopting the figure by round off concept. We do not see any merit in this appeal of the assessee. It is dismissed.

In the result, appeal of the assessee is dismissed. Pronounced in the Open Court on 19th March, 2019.