https://www.taxtmi.com/caselaws?id=758118 The ITAT Delhi ruled in favor of the assessee company regarding additions under Section 56(2)(viib) for alleged excess share premium. The tribunal held that both the AO and CIT(A) misconceived the law by assuming book value cannot be substituted when determining fair market value (FMV) using net asset value (NAV) method. The assessee was entitled to modify NAV components with proper evidence, including valuation reports and market valuations of subsidiary assets. The tribunal found the DCF method and reworking of subsidiary company valuations permissible under Explanation (a)(ii) of Section 56(2)(viib), provided correctness could be established through competent evidence. The appeal was allowed. en-us Thu, 05 Sep 2024 00:00:00 +0530 Mon, 02 Mar 2026 12:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=758118 The ITAT Delhi ruled in favor of the assessee company regarding additions under Section 56(2)(viib) for alleged excess share premium. The tribunal held that both the AO and CIT(A) misconceived the law by assuming book value cannot be substituted when determining fair market value (FMV) using net asset value (NAV) method. The assessee was entitled to modify NAV components with proper evidence, including valuation reports and market valuations of subsidiary assets. The tribunal found the DCF method and reworking of subsidiary company valuations permissible under Explanation (a)(ii) of Section 56(2)(viib), provided correctness could be established through competent evidence. The appeal was allowed. Case-Laws Income Tax Thu, 05 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=758118