https://www.taxtmi.com/caselaws?id=397372 The CIT(A) ruled in favor of the appellant, allowing the use of the discounted free cash flow method for valuation of shares issued after the insertion of Rule 11UA(2) in the Income Tax Act, 1961. The ITAT upheld this decision, emphasizing the appellant's right to choose the valuation method and rejecting the revenue's attempt to impose a specific method. As the shares were issued below the fair market value calculated using the discounted free cash flow method, no addition to income was warranted under section 56(2)(viib), resulting in the dismissal of the revenue's appeal. en-us Mon, 10 Aug 2020 00:00:00 +0530 Mon, 17 Aug 2020 11:07:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=397372 The CIT(A) ruled in favor of the appellant, allowing the use of the discounted free cash flow method for valuation of shares issued after the insertion of Rule 11UA(2) in the Income Tax Act, 1961. The ITAT upheld this decision, emphasizing the appellant's right to choose the valuation method and rejecting the revenue's attempt to impose a specific method. As the shares were issued below the fair market value calculated using the discounted free cash flow method, no addition to income was warranted under section 56(2)(viib), resulting in the dismissal of the revenue's appeal. Case-Laws Income Tax Mon, 10 Aug 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=397372