https://www.taxtmi.com/caselaws?id=756112 ITAT Ahmedabad upheld CIT(A)'s deletion of addition under Section 56(2)(viib) regarding valuation of Compulsory Convertible Preference Shares (CCPS). The tribunal held that DCF method adopted by assessee for CCPS valuation was legitimate and compliant with Rule 11UA. AO cannot reject prescribed valuation method, and reliance on subsequent financial losses to question valuation was misplaced. Transaction between wholly owned subsidiary and holding company did not align with legislative intent of preventing unaccounted money generation. Revenue's appeal was dismissed. en-us Thu, 25 Jul 2024 00:00:00 +0530 Sat, 27 Jul 2024 08:46:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756112 ITAT Ahmedabad upheld CIT(A)'s deletion of addition under Section 56(2)(viib) regarding valuation of Compulsory Convertible Preference Shares (CCPS). The tribunal held that DCF method adopted by assessee for CCPS valuation was legitimate and compliant with Rule 11UA. AO cannot reject prescribed valuation method, and reliance on subsequent financial losses to question valuation was misplaced. Transaction between wholly owned subsidiary and holding company did not align with legislative intent of preventing unaccounted money generation. Revenue's appeal was dismissed. Case-Laws Income Tax Thu, 25 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756112