worked
out below;
(Iakhs)
Fixed asset at book value Rs. 1075.00
(+) Net Current Assets Rs552.30
Rs. 1627.30
(-) Net Current liability Rs. 649.48
Long ... net worth of assessee is a
negative figure. therefore. question of fair market value of the
shares, at per the net asset value method, being
also upholding the merger method for accounting
the amalgamation and net asset value method instead of
discounted cash flow method to compute the goodwill ... net assets vesting in the assessee company
as a result of amalgamation. The net book value of the assets
(assets - liabilities) of the amalgamating company
value based on the Net Asset
Method second method mention in Income tax rules. The detail
calculation/working under Net Asset Value method ... corroborated with another method of valuation,
accordingly the fair value arrived under DFCF method is
corroborated with valuation as per Net Asset Value
Method
value of Rs. 11.5 per share as arrived at as per net asset
method prescribed under rule 11 of the Income Tax Rules. Aggrieved ... net asset value method without appreciating the fact
that said method is just one of the method is net asset value method prescribed
under rule
with regard to the method adopted by the assessee namely
weighted average cost method or net accretion to asset method.
12. The assessee resisted ... valuation methods should have been adopted by the assessee and
whether they should have adopted weighted average cost method or
net accretion to asset method
valuation made by him was on Net
Asset value method (Q.30 Xn). This method had been adopted by him on
the basis ... valuation made by the firm. According to him, the net asset valuation
method was not correct. (Q. 24 Xn.). Yield method or earning per share
absence of proper books of
accounts the 'net asset method' was found the
only way to proceed further.”
35. The learned Senior Standing
cash
found during two days, rightly held that the net asset method was
found to be the only way to proceed further
below erred in in not giving telescoping effect
by netting income computed under Asset method and
income computed under Income Method;
(v) On the facts ... Authorities below
erred in not giving telescoping effect by netting income computed
under Asset method and income computed under Income Method".
15. According
share
valuation report showed that the assessee had adopted the Net Asset Value method
for computing the valuation shares. It was stated in the valuation ... have been considered
for valuation of shares.
8. The Net Asset Value Method had been adopted for determining the value of shares.
9. The Fair
