AI Drafter - (New and Powerful) 
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
TaxTMI 
TaxTMI 
Tribunal Affirms AO's Valuation of Unquoted Shares Using Section 56(2)(viib) and Rule 11UA, Rejects DCF Method.
X X X X Extracts X X X X
X X X X Extracts X X X X
....The Income Tax Appellate Tribunal upheld the Assessing Officer's invocation of Section 56(2)(viib) read with Rule 11UA for determining the fair market value of unquoted shares allotted to promoters/existing shareholders at a premium. The assessee failed to substantiate the Discounted Cash Flow (DCF) method adopted for valuation. The Tribunal concurred with the Assessing Officer's rejection of the DCF method and application of Rule 11UA(2) to determine the fair market value at Rs. 63.47 per share. The Tribunal rejected the assessee's reliance on recent amendments to Rule 11UA regarding the option to adopt the valuation date, as no valuation report existed at the time of share issuance. The Tribunal distinguished its decision from the case of.........