Admissibility of electronic evidence bars undervaluation demands where printouts, retracted statements and no cross-examination leave the case unprove...
Limitation in oppression and mismanagement proceedings: prior knowledge of removal and dilution barred the challenge, with valuation directions upheld...
AO rejected DCF method for valuation of shares issued as rights issue to existing shareholders. Instead, AO applied NAV method u/r 11UA determining FMV at Rs.3.07 per share and made addition u/s 56(2)(viib). ITAT held DCF is recognized valuation method based on future projections considering various factors. AO cannot tinker with DCF method adopted by assessee and apply NAV method. When law provides two methods, AO cannot reject one method for another without substantial reasons. Following Cinestaan, DCF valuation by assessee accepted. No addition u/s 56(2)(viib) upheld. Regarding addition u/s 68, assessee companies had sufficient reserves, revenue, borrowings to explain source. Onus of proving source discharged. Addition u/s 68 deleted. Assessee's appeal allowed.
AO rejected DCF method for valuation of shares issued as rights issue to existing shareholders. Instead, AO applied NAV method u/r 11UA determining FMV at Rs.3.07 per share and made addition u/s 56(2)(viib). ITAT held DCF is recognized valuation method based on future projections considering various factors. AO cannot tinker with DCF method adopted by assessee and apply NAV method. When law provides two methods, AO cannot reject one method for another without substantial reasons. Following Cinestaan, DCF valuation by assessee accepted. No addition u/s 56(2)(viib) upheld. Regarding addition u/s 68, assessee companies had sufficient reserves, revenue, borrowings to explain source. Onus of proving source discharged. Addition u/s 68 deleted. Assessee's appeal allowed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4817 
Join Channel 
