Cash Flow method;..................."
10. Clause (a) and (b) of the Rule 11UA(2) of
the Rule prescribes the method of Net
Asset Value method ... learned Assessing
Officer needs to examine that
method. Naturally, if the
discounted cash flow method and net
asset value method gives the same
result, where
averaging the valuation as per PECV method as well as net asset
value method. He submitted that when the legislation has conferred
an option ... learned Assessing Officer needs to examine
that method. Naturally, if the discounted cash flow method and net
asset value method gives the same result, where
assessees either that break-up method is not a recognised
method or that yield method is the only permissible method for valuing the
unquoted equity ... devised, viz., (1) net asset
value method; (2) profit earning capacity value method; and (3) market
value method in the case of listed shares. Para
Mahadevia , 122 ITR 38. If the valuation was done by the net
asset method, the exchange ratio should have been 1:2 in favour ... borrowings to the equity capital.
(6) The values of the net assets of the two companies. Where the
transaction is a thorough-going merger, this
determination of Fair Market Value ("FMV") they are: (a)
net asset method; (b) multiple based method; and (c) discounted cash-flow
method
shares, namely, the Net Asset
Method, The Profit Earning Capacity Method, and the Market Price
Method. It observes that each method proceeds on different
fundamental ... share.
52. By adopting the Net Asset Value Method the value of
Rs.77 per share has been worked out by dividing the Share Capital
net assets,
the value per equity share of GFL based on net assets would work
out to Rs. 17.41.
[ii] Profit
earnings method :
Under
this ... profit earning capacity method and 25% to the value based
on net assets method, resulting in the value of the equity shares of
GFL, working
Shiv Sewak Singh And Others vs State Of U.P. And Others on 25 May
determination of Fair Market Value ("FMV") they are: (a)
net asset method; (b) multiple based method; and (c)
discounted cash-flow method
Pandu Nagar H-2 Sudhar Samiti And Others vs State Of U.P. & Others
