https://www.taxtmi.com/highlights?id=101934 Rule 11UA(2) permits an assessee to choose either the NAV or DCF method for valuing unquoted equity shares. Where the NAV method is selected and the audited-financial-statement computation is not disputed, income-tax authorities may scrutinise the valuation only within that method and cannot substitute another approach; a share-premium addition based on rejecting the NAV valuation is therefore unsustainable. Income-tax authorities cannot sustain such an addition by determining alleged FEMA contraventions, particularly where no competent FEMA authority has alleged a violation. A right-share issue is not a colourable device without a demonstrated tax benefit or unaccounted-money element. The share-premium addition was directed to be deleted. en-us Wed, 22 Jul 2026 08:48:46 +0530 Wed, 22 Jul 2026 08:48:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=101934 Rule 11UA(2) permits an assessee to choose either the NAV or DCF method for valuing unquoted equity shares. Where the NAV method is selected and the audited-financial-statement computation is not disputed, income-tax authorities may scrutinise the valuation only within that method and cannot substitute another approach; a share-premium addition based on rejecting the NAV valuation is therefore unsustainable. Income-tax authorities cannot sustain such an addition by determining alleged FEMA contraventions, particularly where no competent FEMA authority has alleged a violation. A right-share issue is not a colourable device without a demonstrated tax benefit or unaccounted-money element. The share-premium addition was directed to be deleted. Highlights Income Tax Wed, 22 Jul 2026 08:48:46 +0530 https://www.taxtmi.com/highlights?id=101934