done. In a case future cash flow projections do not
meet the actual figures, rejection of discounted cash flow method is not
proper. If projected ... future cash flows. If there are no assumptions, there cannot
be an estimate of future projected cash flows and then discounted cash
flow method becomes
assessee filed calculation of
valuation of shares following the Discounted Cash Flow Method
(DCF) duly certified by a Chartered Accountant. However, the AO
noted that ... valuations mainly on the basis that in the
'Discounted Cash Flow Method', the discounting factor of 7% has
been taken arbitrarily
done. In a case future cash flow projections do
not meet the actual figures, rejection of discounted cash flow method
is not proper. If projected ... future cash flows. If there are no assumptions, there
cannot be an estimate of future projected cash flows and then
discounted cash flow method becomes
done. In a case
future cash flow projections do not
meet the actual figures, rejection
of discounted cash flow method is
not proper. If projected ... future cash flows. If
there are no assumptions, there
cannot be an estimate of future
projected cash flows and then
discounted cash flow method becomes
done. In a case future
cash flow projections do not meet the actual figures,
rejection of discounted cash flow method is not proper. If
projected ... cash flows. If there are no assumptions, there cannot be an
estimate of future projected cash flows and then
discounted cash flow method becomes redundant
done. In a case future cash flow projections do not meet the
actual figures, rejection of discounted cash flow method is
not proper. If projected ... future cash flows. If there are no assumptions, there cannot
be an estimate of future projected cash flows and then
discounted cash flow method becomes
also upholding the merger method for accounting
the amalgamation and net asset value method instead of
discounted cash flow method to compute the goodwill ... method were
misleading and fallacious and the assessee should have followed
net asset value method instead of discounted cash flow method.
The AO analyzed
valuer for determination of Fair Market Value (FMV) wherein the
Discount Cash Flow Method (DCF) was selected by the valuer. This report was
obtained ... merchant banker or an accountant as per the Discounted Free Cash Flow
method."
30. Ergo, the assessee has an option to do the valuation
done. In a case future
cash flow projections do not meet the actual figures, rejection of
discounted cash flow method is not proper. If projected ... future
cash flows. If there are no assumptions, there cannot be an
estimate of future projected cash flows and then discounted cash
flow method becomes
that future earning analysis method not
allowed in rule 11UA but that rule allow two methods discounted
free cash flow method and 'Book value ... carried out on various methods
i.e. Fair Market Value, Net Asset Value, Future Earning Method
and Discounted Cash Flow method. (The aforesaid fact
