https://www.taxtmi.com/caselaws?id=404911 The Delhi HC upheld the assessee's share valuation using the Discounted Cash Flow method for determining fair market value under Section 56(2)(vii)(b). The Revenue challenged the valuation after actual performance didn't match projections, arguing the DCF projections were unrealistic. The court held that valuation is not an exact science and depends on expert assessment of future potential. Since the assessee used a recognized methodology and shares were subscribed by independent outside investors, the Revenue couldn't demonstrate the valuation approach was demonstrably wrong or erroneous. The AO failed to provide alternative fair value after rejecting the chartered accountant's valuation report. The court dismissed the Revenue's appeal, finding no question of law arose. en-us Mon, 01 Mar 2021 00:00:00 +0530 Fri, 04 Jul 2025 18:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=404911 The Delhi HC upheld the assessee's share valuation using the Discounted Cash Flow method for determining fair market value under Section 56(2)(vii)(b). The Revenue challenged the valuation after actual performance didn't match projections, arguing the DCF projections were unrealistic. The court held that valuation is not an exact science and depends on expert assessment of future potential. Since the assessee used a recognized methodology and shares were subscribed by independent outside investors, the Revenue couldn't demonstrate the valuation approach was demonstrably wrong or erroneous. The AO failed to provide alternative fair value after rejecting the chartered accountant's valuation report. The court dismissed the Revenue's appeal, finding no question of law arose. Case-Laws Income Tax Mon, 01 Mar 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=404911