prescribed the specific method for
valuation i.e Discounted Cash Flow Method (hereinafter
also referred as "DCF"), so he was free (and rather ... specifically provided a method of valuation and the
assessee exercised an option by choosing a particular method (DCF here),
25
ITA No.884/JP/2016
justification of application
of DCF, the provisions of Income Tax allow an assessee the option to
adopt DCF method without giving any reasons and more ... petitioner. This, even after he concedes with the method of valuation namely,
NAV Method or the DCF Method to determine the fair market value
opted for DCF method, the AO cannot discard the
same and adopt other method i.e. NAV method of valuing shares. In the case ... petitioner. This, even after he concedes with the method of valuation namely,
NAV Method or the DCF Method to determine the fair market value
This,
even after he concedes with the method of valuation
namely, NA V Method or the DCF Method to determine
the fair market value ... assessee has option to choose one of the method i.e. net asset
method or DCF method, whichever is favourable to them.
19. Since
adopted by the assessee. In
this case, the assessee adopted the DCF Method and determined
the FMV of the shares, as such ... took place.
8. Lastly, he submits that in so far as DCF method is concerned
it is always possible for the company to decide
discounted cash flow method. He
held in so far as DCF method is concerned the same has to be on
the date of receipt ... method has been adopted whereas in
valuation report dated 27.12.2012, DCF method has been
adopted. There is no NAV method prescribed under Rule 11UA
which
Discounted Cash Flow' method (hereinafter referred to as "the DCF method"). In fact, in paragraph 13 of the affidavit filed in support ... methodology of DCF, when the process had no nexus to singular issue of land valuation and when the DCF method was properly worked out, there
opted for DCF
method, the AO cannot discard the same and adopt other method
i.e. NAV method of valuing shares. In the case ... petitioner. This, even after
he concedes with the method of valuation namely, NAV
Method or the DCF Method to determine the fair market
value
comes to less than Rs. 100/- per share whereas value as DCF
method was worked out at Rs. 250/- per share. In this regard ... submitted that
DCF method is far superior method as compared to Net asset value method
as the said method represents true potential of the company
fact, since M/s Ernst& Young have not considered DCF method for which the future projections would have been material, this objection ... Asset based Method and Earnings Based method. The percentage of shares involved was 4.91%. The valuer had not considered DCF Method on the ground that
