Held that when the assessee company determined Fair Market Value of shares issued at premium on basis of Discount Cash Flow method in accordance with rule 11UA(2)(b) and had also filed valuation report of share duly certified by Chartered Accountant, the Assessing Officer/CIT (Appeals) was not justified in changing method of valuation of shares at premium on basis of book value of share. Matter remanded. (AY. 2014-15)
Him Agri Fesh (P.) Ltd. v. ITO (2021) 190 ITD 429 / 90 ITR 95 (Amritsar)(Trib.)
S. 56 : Income from other sources-Method of valuation of shares-Discount Cash Flow method (DCF)-Method of valuation of shares adopted by assessee could be challenged by Assessing Officer only if it was not a recognized method of valuation as per rule 11UA(2)-Matter remanded. [S. 56(2)(viib), R. 11UA(2)]