https://www.taxtmi.com/caselaws?id=460000 The ITAT Mumbai ruled in favor of the assessee company regarding share valuation under section 56(2)(viib). The company issued equity shares at premium using DCF method for valuation, but revenue rejected this and applied NAV method instead. The tribunal held that assessee has option to choose between DCF and NAV methods under Rule 11UA, and AO cannot change the chosen method. Following Vodafone M-Pesa Ltd. precedent, AO can scrutinize valuation but must use the same method opted by assessee. The addition was deleted as the independent valuer's projections proved accurate in subsequent years. en-us Fri, 23 Dec 2022 00:00:00 +0530 Tue, 07 Jan 2025 19:56:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460000 The ITAT Mumbai ruled in favor of the assessee company regarding share valuation under section 56(2)(viib). The company issued equity shares at premium using DCF method for valuation, but revenue rejected this and applied NAV method instead. The tribunal held that assessee has option to choose between DCF and NAV methods under Rule 11UA, and AO cannot change the chosen method. Following Vodafone M-Pesa Ltd. precedent, AO can scrutinize valuation but must use the same method opted by assessee. The addition was deleted as the independent valuer's projections proved accurate in subsequent years. Case-Laws Income Tax Fri, 23 Dec 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460000