arrived at under DCF method. The Assessing Officer
has rejected DFC method selected by the assessee and adopted
net asset value method and for this ... assessee under DCF method.
DCF method is one of the trusted methods for valuation of shares
and said method is prescribed under Rule 11UA
method of valuation adopted in the valuation report and adopting
Net Asset Value Method.
3.5. That the learned Commissioner of Income Tax (Appeals) erred ... method of valuation adopted in the valuation report and adopting Net Asset
Value Method.
ITA No. 2541/Bang/2019
ITA No. 37/Bang/2020
shares o basis of Discounted Free Cash Flow Method instead of Net asset
method.
Section 56(2)(viib) of the Act states ... change the method adopted by the assessee for
valuing the market value of the shares from discounted cash flow
method to net asset value method
filed
detailed calculation of price of shares as per Net Asset Value method (NAV) as well
as Earning Per Share capitalizations (EPS) methods and that ... unreasonable. And as per the net asset value
method (NAV) value of shares as computed as per Rule 11UA of the Rules
relevant only
for the purposes of valuation based on the Net Assets Method provided under Rule
11UA of the IT Rules. Thus when the said ... net assets which is based on the net
book value of the assets of the company and the fair market value of the assets
view
that the value of share should be based on "Net Asset Method"
mentioned in rule 11UA of the Income Tax Rules. Accordingly ... asset
value method is the appropriate method to determine the fair
market value of share. Accordingly, the A.O. determined the net
asset value
Officer as the AO
is himself not an expert.
(d)Applying net asset method, the AO has computed a
negative share price. After having accepted ... clause (b), at the
option of the assessee, namely:--
(a) ............ (net asset method), or
(b) the fair market value of the unquoted equity shares
determined
Chartered Accountant who had
adopted the Discounted Cash Flow [DCF] method for
valuation of the shares that was recognized under the Rules
notified under section ... computed by the learned
A.O., who had adopted the net asset method prescribed
under Rule 11UA(1)(c)(b) (before the substitution
order is not
as per law because it is based on Net Asset Method which is not
supported by any of the provisions ... order is not as
per law because it is based on Net Asset Method which is not supported
by any of the provisions
value for unquoted equity share has been
made based on Net Asset Value Method as per sub-clause (ii) of clause
(a) of Explanation ... rejecting the value adopted by the assessee as per Net Asset Value
Method. In the absence of such findings the substantiated value of the
assessee
