The Tribunal held that the assessee can value the shares for determining its fair market value of unquoted equity shares either at the book value of the assets as per the prescribed formula or as per the discounted free cash flow method. The discounted free cash flow method was one of the acceptable methods under rule 11UA of the Income-tax Rules, 1962 and the Commissioner (Appeals) did not find any fault in it. The Assessing Officer was also supplied with the evidence and did not comment against it. Unless the valuation made by the assessee applying the discounted cash flow method was found fault with by pointing out deficiencies and inadequacies, it could not be rejected at the threshold. Therefore, the addition of Rs. 34,05,360 made under section 56(2)(viib) was not sustainable.( AY.2014-15)