Income from other sources - addition u/s 56(2)(viib) - Method of ...

Assessee Must Prove Valuation Accuracy for Share Premiums u/s 56(2)(viib) Using DCF Method and Empirical Data.

October 1, 2020

Case Laws Income Tax AT

Income from other sources - addition u/s 56(2)(viib) - Method of valuation of shares issued at premium - FMV - The primary onus to prove the correctness of the valuation Report is on the assessee as he has special knowledge and he is privy to the facts of the company and only he has opted for this method. Hence, he has to satisfy about the correctness of the projections, Discounting factor and Terminal value etc. with the help of Empirical data or industry norm if any and/or Scientific Data, Scientific Method, scientific study and applicable Guidelines regarding DCF Method of Valuation. - AT

View Source

← Previous Next →

Income from other sources - addition u/s 56(2)(viib) - Method of ...

Assessee Must Prove Valuation Accuracy for Share Premiums u/s 56(2)(viib) Using DCF Method and Empirical Data.

October 1, 2020

Case Laws Income Tax AT

You may also like:

Addition u/s 56(2)(viib) - income from other sources - share premium received by the assessee - discarding the DCF method of valuation of shares adopted by the assessee...

Section 56(2)(viib) deals with the consideration received by a company for issue of shares at a premium. The assessee company issued equity shares at a premium, which...

AO rejected DCF method for valuation of shares issued as rights issue to existing shareholders. Instead, AO applied NAV method u/r 11UA determining FMV at Rs.3.07 per...

Addition u/s 56(2)(viib) - Method of valuation of shares - closely held company issues its shares at a premium - The tribunal sided with the assessee, affirming the FMV...

Addition u/s 56(2)(viib) - share capital and premium received by the assessee - method of valuation as per Rule 11U and 11UA - When shares were issued at premium based...

Addition u/s 56(2)(viib) - taxing the share premium received - DCF Method of Valuation - The primary onus to prove the correctness of the valuation Report is on the...

Valuation of shares at a premium u/s 56(2)(viib) - Keeping in view that DCF is correct method of determining the FMV of the unquoted shares, the assessee has option to...

Addition u/s. 56[2] [viib] - method for valuation of the shares - equity and preference shares allotted by assessee to various residents at a premium - Discounted Cash...

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...

AO cannot interfere in assessee's chosen valuation method u/s 56(2)(viib). AO exceeded jurisdiction by rejecting DCF method and applying NAV method. Transaction between...

Addition under the Head "Income from Other Sources" u/s 56(2)(viib) - It is apparent that there is no case of application of Section 56(2)(viib) to the facts of...

The ITAT held that for determining the fair market value of shares u/s 56(2)(viib) of the Income Tax Act, it is mandatory to follow the methods prescribed u/rs 11U and...

Addition u/s 56(2)(viib) - issue of shares at premium - working of fair market value as per 11UA(2)(a) - The ITAT observed that Rule 11UA(2) provides an option to the...

Enhancement made by the Ld. CIT(A) u/s 251(1) r.w.s. 56(2) (viib) - AO substituted fair market value determined by the assessee through his own valuation - Assessees...

Income from other sources u/s 56(2)(viib) - determining the share value of the premium - Method of valuation of shares - AO did not point out any flaw in the method of...

Quick Updates: