Assessee is  a holding company of an overseas 100 per cent foreign subsidiary (through SPV), wherein an immovable property in form of Hotel Apartment Building was situated abroad.It had issued equity shares at premium.  For computing fair market value (FMV) of its shares issued, assessee had taken value of property held in name of overseas subsidiary company at a fair value using DCF method following rule 11UA(1)(c)(b) as per provisions of section 56(2)(viib).Assessing Officer  adopted book value of investment in subsidiary for deriving FMV and, thus, invoking provisions of section 56(2)(viib) had made an addition on account of excess premium treating it as deemed income. CIT(A) affirmed the order of the AO. On appeal the Tribunal held that   method adopted for reworking of subsidiary company by applying DCF method or any known method is permissible as long as assessee is able to establish correctness of valuation in light of valuation report furnished. Since assessee had produced valuation report as well as market valuation of subsidiary company in foreign currency, valuation of shares of subsidiary company to determine FMV of holding company, i.e., assessee-company for purposes of issuance of shares at premium, same is  in accord with deeming provision and, therefore, additions affirmed by the CIT(A) is deleted. (AY. 2016-17)