The High Court considered a case involving income from Other ...

Income from Other Sources u/s 56(viib) - Assessing Officer rejects DCF valuation, but CIT(A) deletes addition. No consideration received for shares. DCF method valid.

Case Laws Income Tax

June 6, 2024

The High Court considered a case involving income from Other Sources u/s 56 (viib). The Assessing Officer rejected the valuation report provided by the assessee-company, claiming the Discounted Cash Flow (DCF) method used was invalid. The CIT(A) overturned the addition, stating no consideration was received for the shares issued. The High Court upheld this decision, noting Section 56 (2) (viib) does not apply without consideration. It also ruled the AO cannot impose the Net Asset Value method over DCF, as the latter is permissible u/s Rule 11UA (2)(d). The Revenue's appeal was dismissed.

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The High Court considered a case involving income from Other ...

Income from Other Sources u/s 56(viib) - Assessing Officer rejects DCF valuation, but CIT(A) deletes addition. No consideration received for shares. DCF method valid.

Case Laws Income Tax

June 6, 2024

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