substitute the
method of the valuation, himself value the shares by changing
the method from discounted cash flow method to 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
Method'
and then, alternatively, had submitted that even the 'Net Asset
Method' could also be applicable and the valuation of the land ... viib) of the Income Tax Act, 1961 both
by the 'Net Asset Method' and by the 'Discounted Cash Flow
Method
valued the share under Net Asset Value Method (NAV Method)
and made the addition ignoring the submissions of the Appellant.
Moreover ... comparing the value based on the asset of the company.
Therefore, the Net Asset Value method as well as any of the other
methods prescribed
actual value of Rs.7,875/- per share in
view of Net Assets Method as prescribed by Rule 11UA of the Income Tax
Rules
major asset is a
land at Salarpur Brijwasan admeasuring 5.35 acres. He
submitted, the registered valuer applying Net Value Asset method
as prescribed in section ... said valuation report, the registered valuer has applied
the Net Asset Value method by considering the value of land at
Delhi admeasuring 5.35 acres owned
Without these values, the
4
equity shares according to the Net Asset Value method (NAV) would be
Rs.10.99/- per share which was even ... valuation.
The valuer adopted, inter alia, three methods of asset valuation, the net
asset value (NAV), maintainable yield basis and the quoted price basis.
They
Rules'), amongst other things,
prescribed the Net Asset Value Method (based on Balance Sheet values) for arriving
at the FMV for the purpose ... assessment order. It was submitted that assessee
followed NAV(Net Asset Value) method to determine Fair Market Value(FMV) of
the equity shares
raising the book value of fixed assets (net of depreciation)
to Rs.3,89,19,099/- in A.Y. 2017-18 and then transferring ... changing method of valuation of shares at premium to
Net Asset Value method. The case law has been enclosed. [PB ]
Issues
iii. The share premium
Page no. 227 to 228
Value of shares by Net asset method is Rs. 766/
Value of shares as profit Earning method
footnote that the net book value included
share application money. Thus valuation made by the CA by Net assets
method is flawed.
016. Explanation ... examining it [3]
even otherwise, accepting flawed valuation of share by net asset method by
allowing inclusion of share application money pending allotment in net
