Valuation of the shares offered for subscription - Determination...

Valuation of the shares offered for subscription - Determination of fair market value - Applicability of u/s 56(2)(viib) read along with Rule 11UA - Adoption of the Net Asset Value (NAV) method over the Discounted Cash Flow (DCF) method - The court underscored that the option of selecting a valuation method for shares is unequivocally vested with the assessee. It was highlighted that the AO, while possessing the authority to question the veracity of a valuation report, is not empowered to independently adopt a different valuation methodology from that chosen by the assessee. - Conclusively, the High Court allowed the appeal, setting aside the ITAT's order and remitting the matter back to the AO for a fresh valuation exercise strictly adhering to the DCF method, albeit with liberty to appoint an independent valuer.