https://www.taxtmi.com/caselaws?id=763471 ITAT Mumbai ruled in favor of the assessee regarding securities premium addition under Section 56(2)(vii)(b) for right issue shares. The AO rejected the DCF valuation method and applied NAV method, determining share value at Rs.3.07. ITAT held that AO cannot arbitrarily reject DCF method without substantial reasons when law provides multiple valuation methods. Following Cinestaan Entertainment precedent, the tribunal accepted assessee's DCF valuation. Additionally, Section 68 additions were deleted as parties had sufficient funds with proper documentation. Appeal allowed. en-us Tue, 17 Dec 2024 00:00:00 +0530 Fri, 20 Dec 2024 08:46:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763471 ITAT Mumbai ruled in favor of the assessee regarding securities premium addition under Section 56(2)(vii)(b) for right issue shares. The AO rejected the DCF valuation method and applied NAV method, determining share value at Rs.3.07. ITAT held that AO cannot arbitrarily reject DCF method without substantial reasons when law provides multiple valuation methods. Following Cinestaan Entertainment precedent, the tribunal accepted assessee's DCF valuation. Additionally, Section 68 additions were deleted as parties had sufficient funds with proper documentation. Appeal allowed. Case-Laws Income Tax Tue, 17 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763471