https://www.taxtmi.com/caselaws?id=313339 ITAT Hyderabad held that AO cannot reject the DCF valuation method chosen by assessee for determining FMV of unquoted shares under section 56(2)(viib). AO must scrutinize the valuation report within DCF method parameters and can reject the report but not the method itself. If rejecting the report, AO must conduct fresh valuation using same DCF method. CIT(A) erred in applying NAV method instead of examining DCF report. CBDT Circular dated 12.07.2017 cannot be applied retrospectively to valuation dated 01.07.2016. Matter remanded to AO to determine FMV using DCF method based on valuation date materials. Revenue appeal allowed for statistical purposes. en-us Thu, 28 Dec 2023 00:00:00 +0530 Mon, 08 Apr 2024 17:11:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=313339 ITAT Hyderabad held that AO cannot reject the DCF valuation method chosen by assessee for determining FMV of unquoted shares under section 56(2)(viib). AO must scrutinize the valuation report within DCF method parameters and can reject the report but not the method itself. If rejecting the report, AO must conduct fresh valuation using same DCF method. CIT(A) erred in applying NAV method instead of examining DCF report. CBDT Circular dated 12.07.2017 cannot be applied retrospectively to valuation dated 01.07.2016. Matter remanded to AO to determine FMV using DCF method based on valuation date materials. Revenue appeal allowed for statistical purposes. Case-Laws Income Tax Thu, 28 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=313339