Assessee issued 9,20,000 shares at rate of Rs. 10 each and further of Rs. 40 each raising total share capital including share premium of certain amount. Assessee had opted to determine FMV of shares by following discounted cash flow (DCF) method under rule 11UA(2)(b).The Assessing Officer determined FMV of shares at Rs. 27.3 per share based on method prescribed under rule 11UA(2)(a), and accordingly, added differential amount under section 56(2)(viib). CIT(A) up held the order of the Assessing Officer. On appeal the Tribunal held that the assessee had produced on record a report of C.A., who had calculated FMV of shares at Rs.50/-per share as per DCF method. The Assessing Officer had not pointed out any defect or infirmity in aforesaid DCF method followed by assessee. Tribunal held that it is  at option of assessee to follow either clause (a) or clause (b) of rule 11UA (2), and assessee had followed DCF method prescribed under clause (b) of rule 11UA(2), action of Assessing Officer in determining FMV of shares by following method as per clause (a) of rule 11UA(2) was not justified.  (AY. 2014-15)