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
earning capacity value method,
whereas the assessee has followed average value of profit
earning capacity value method as well as 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
shares by the
assessee company as per the "Net Asset Value" (NAV) Method, which was strictly
as per the mandate of "Explanation ... preference shares could safely be carried out as per "Net Asset Value" method as
was so done by the present assessee company
either
Net Asset Value Method or Discounted cash flow Method. He is of the
view that the method taken for value of unquoted equity shares ... basis of net asset value (NAV). Which were
added (in case of positive net assets) or reduced (in case of
negative net assets
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
company were valued on the Net Value Asset method. The learned
Assessing Officer noted that assessee has shown the net asset value ... value of the shares of the
assessee company adopting net asset method on his own.
Admittedly, net asset value method is one of the methods
time by taking
into account market price, discounted cash flow, net asset value
method, and thereafter giving proper weightages for lock in period,
the value ... into
consideration vis-à-vis market price, discounted cash flow, net asset
value method, an expert has arrived at the fair market value
time by taking
into account market price, discounted cash flow, net asset value
method, and thereafter giving proper weightages for lock in period,
the value ... into
consideration vis-à-vis market price, discounted cash flow, net asset
value method, an expert has arrived at the fair market value
net asset
value (NAV) of each such company, which were added (in case of positive net
assets) or reduced (in case of negative net assets ... value of SBPL, the valuer has
adopted hybrid method Le., DCF method for VIL and net asset value
method (NAV) for intermediary companies which does
Rules"). However, the Ld. AO
changed the method of valuation to Net Assets value ("NAV")
method as prescribed under rule 11UA ... justified in rejecting DCF method
and adopting Net Asset Value method. Therefore, the
addition made by the AO by rejecting the DCF method
adopted
