Held, dismissing the appeal, that the Tribunal had after considering the provisions contained in section 56(2)(viib) and rule 11UA(2) of the Income-tax Rules, 1962 had held that according to this rule the fair market value of the shares should be the value determined under the prescribed formula or according to the discounted cash flow method which was at the option of the assessee. Therefore, the discounted cash flow method adopted by the assessee for determining the fair market value of the shares under rule 11UA(2) did not require any interference, and the additions made under section 56(2)(viib) were not sustainable in law. No question of law arose.(AY. 2013-14)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 56: Income from other sources-Shares at premium-Valuation of shares Discounted cash flow method Determination of fair market value of shares under rule 11UA-Order of Tribunal affirmed.[S. 56(2)(viib), R. 11UA] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-60018","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fC2","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60018","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=60018"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60018\/revisions"}],"predecessor-version":[{"id":60019,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60018\/revisions\/60019"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=60018"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=60018"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=60018"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}