Where the valuation report adopting the DCF method was based on unrealistic and unverified projections, ignored the ICAI Technical Guide on Share Valuation and substantially differed from the company’s actual financial performance, the Assessing Officer was justified in rejecting the DCF valuation and adopting the NAV method. Consequently, the addition under section 56(2)(viib) in respect of excessive share premium was upheld. (AY. 2015-16)