Tribunal held that, the DCF method followed is one of the permissible method of valuation of shares in terms of rule 11UA of IT Rules, 1962 and said method is based on free cash flow of future years on the basis of projected financial statements. The projected financials under DCF method need not be equal to the actual performance of the company in subsequent years. However, there should be some degree or fair estimation and assumption while arriving at projected free cash flow. only on the ground that there was a vast difference between projected financials and actual performance of the company for two assessment years. The issue set aside to the file of the AO and directed to re-consider the issue of addition towards share premium u/s. 56(2) (viib). The AO is free to examine method followed by the assessee, however, he does not have power to change method followed by the assessee from DCF method to NAV method, and to decide the issue in accordance with law. (AY. 2015-16)