https://www.taxtmi.com/caselaws?id=447018 ITAT Chandigarh allowed the appeal regarding addition under Section 56(2)(viib) for excess share premium. The assessee converted pre-existing unsecured loans into equity shares at premium, valuing shares at Rs. 1,087 per share using DCF method. The AO rejected this valuation and applied NAV method, determining fair market value at Rs. 450 per share. ITAT held that Rule 11UA(2) provides statutory option to choose between NAV or DCF method, and AO cannot substitute assessee's chosen method. Since conversion involved pre-existing loans without tax abuse, and DCF projections cannot be compared with actual results for rejection, the addition was deleted. en-us Wed, 11 Oct 2023 00:00:00 +0530 Sat, 16 Dec 2023 09:58:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447018 ITAT Chandigarh allowed the appeal regarding addition under Section 56(2)(viib) for excess share premium. The assessee converted pre-existing unsecured loans into equity shares at premium, valuing shares at Rs. 1,087 per share using DCF method. The AO rejected this valuation and applied NAV method, determining fair market value at Rs. 450 per share. ITAT held that Rule 11UA(2) provides statutory option to choose between NAV or DCF method, and AO cannot substitute assessee's chosen method. Since conversion involved pre-existing loans without tax abuse, and DCF projections cannot be compared with actual results for rejection, the addition was deleted. Case-Laws Income Tax Wed, 11 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447018