Assessee issued shares at Rs. 150 per share including a premium of Rs. 140 per share. It produced value of the shares determined by the merchant banker on the basis of DCF method. AO rejected the valuation report on the ground that the assessee failed to produce supporting documents and it was prepared based on the discussion with the management of the company. No material was filed supporting the DCF method. CIT(A) affirmed the order. On appeal the Tribunal held that AO rightly adopted the method under R. 11UA(2) in determining the FMV of the unquoted shares at Rs. 63.47. Assessee obtained valuation of shares by DCF method only during the course of assessment proceedings in the year 2021 and there was no valuation by DCF method at the time of issuance of shares. Arguments of the Authorised Representative that option is left to the assessee to adopt any date i.e., the date of valuation report by merchant bankers for the purpose of sub-r. (2) of r. 11UA cannot be accepted in view of sub-r. (3) thereof. The  AO was justified in invoking the provisions of s. 56(2) (viib) r/w r. 11UA.  Brio Bliss Life Science (P) Ltd. vs. ITO (ITA No. 3067/Chny/2019, dt. 22nd Feb., 2023) distinguished.  (AY. 2018-19)