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2018 (8) TMI 1198 - AT - Income TaxAdditions u/s 56(2)(viib) - valuation of issue of share - AO rejected the discounted cash flow method and arrived at the value of share by Net Asset Value (NAV) method and arrived at the value of 1.17 per share and the difference of ₹ 1.64 (2.81 - 1.17) per share is added by applying section 56(2)(viib) of the Income Tax Act, 1961 [“the Act”]. - Held that:- order of CIT(Appeals) should be set aside and CIT(Appeals) should be directed to examine the reasons given by the assessee as to why DCF method was the most appropriate method of valuation of shares of the assessee in the facts & circumstances and the nature of industry in which the assessee operated. - Decided in favor of assessee for statistical purposes.
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