contention of the AO to value the shares based only
on net asset method. Further Ld. CIT(A) rejected the valuation ... method prescribed in rule
11UA i.e. either net asset method or DCM method. As per the
above rule, assessee has appointed a merchant banker
accepted and was
satisfied with the Net Asset Value method so applied by assessee
company to value its shares as per Explanation clause ... accepted and was satisfied with the Net Asset Value
method so applied by assessee company to value its shares as per
Explanation
under the head 'Trade Receivables' in
accordance with Net Asset Method.
The appellant respectfully prays that the directions
such cash.
Further it must be noted that the Net worth (as per net asset
method) of the lender Company M/s. Tanika Commodities ... received by the Appellant is
Rs. 20 lakhs as against to its net worth of Rs. 83 lakhs
(approx). Thus the creditworthiness of the lender
said expert had valued the shares by
adopting three different methods viz., Net Asset Value (NAV), Earnings
Per Share (EPS) and Discounted Cash Flow ... assessee company shares by three different methods -
(i) As per Net Asset Value (NAV) method - `200.52 per share
(ii) As per Earnings Per Share
respectively. The
valuation is based on Net Asset Value method which 9th respondent admitted
to be most appropriate valuation method for companies having no significant ... ought to have been done on Asset Valuation Method relying on Net Asset
Value. Learned counsel argued that this is a misconceived argument
along with
return of income wherein the assessee adopted accretion of net asset
method for the purpose of computing the taxable income as the books
case by mentioning that the premium is not commensurate
with the net assets transferred.
9
ITA No. 49/MUM/2016 & CO 218/MUM/2017 ... transferred have value and the method
chosen for valuation is the net asset method which has been
approved by the CBDT
conversion option is
that of equity shares and hence Net Asset value method for valuation
of these shares need to be considered .
Since, proposed preference ... also. We have worked out valuation on the basis of net assets, a method
prescribed under Rule 11UA of Income tax, using the net assets
time of retirement on 11.04.2012 is done in terms of net assets of
the partnership which remain after meeting the debts and liabilities, then ... Net Asset Method
or Discounted Cash Flow method is the accepted way of valuing the
shares, and the Assessing Officer adopted the net asset method
