Fair-rent assessment requires consideration of lease terms, valuation principles and prevailing market rent; the certificate was quashed for fresh rev...
Document Identification Number compliance is satisfied when electronically communicated orders are promptly authenticated through a correctly identifi...
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.
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