Addition made by the Assessing Officer is affirmed by the CIT(A). On appeal the Tribunal held that the assessee has followed the DCF method. The Assessing Officer cannot choose the method of his choice. Accordingly the assessee-company having allotted shares @ Rs. 100 (face value Rs. 10 plus premium Rs. 90) per share which is much less than the fair market value of Rs. 158 per share as determined by applying DCF method. Addition is deleted. (AY. 2014-15, 2015-16)
Idana Pet Industries (P) Ltd. v. ITO (2023) 37 NYPTTJ 1672 / (2024) 227 TTJ 887 / 234 DTR 73 (Jodhpur)(Trib)
S. 56 : Income from other sources-Shares at premium-DCF method-Assessing Officer cannot choose the method of his choice-Addition is deleted. [S.56(2)(viib), R.11UA]
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