Assesee valued the equity value of shares of Rs 10 each at premium of Rs 40 per share , accordingly the fair value was determined by a Merchant banker only on basis of Direct Cash Flow  Method (DCF) , only depending on data supplied by assessee . AO rejected valuation report and independently determined FMV of shares at Rs. 9.60 each on basis of NAV method . FMV of shares over Rs. 9.60 i.e. Rs. 40.40 was disallowed by AO. under S.56(2)(vii) of the Act and added to assessee’s income . On appeal by the assessee the Tribunal held that  as no evidence was produced for verifying correctness of data supplied by assessee, AO was justified in rejecting DCF method and adopting Net Asset Value method. ( AY.2014-15 )
Editorial: Distinguished in Cinestaan Entertainment ( P) Ltd v ITO ( 2019 ) 177 itd 890 ( Delhi ) ( Trib) , Mantram Commodities ( P)Ltd v ITO ( 2021 ) 188 ITD 687 ( Delhi ) ( Trib)