Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (10) TMI 1197 - AT - Income TaxIncome from other sources - valuing shares and the procedure to be followed - AO rejected the DCF method followed by assessee and recomputed under NAV method and made addition as "income from other sources" u/s 56(2)(viib) - HELD THAT:- An identical issue was considered in case of M/s. Town Essential Pvt. Ltd. [2021 (7) TMI 17 - ITAT BANGALORE] Primary onus to prove the correctness of the valuation Report is on the assessee as he has special knowledge and he is privy to the facts of the company and only he has opted for this method. Hence, he has to satisfy about the correctness of the projections, Discounting factor and Terminal value etc. with the help of Empirical data or industry norm if any and/or Scientific Data, Scientific Method, scientific study and applicable Guidelines regarding DCF Method of Valuation. The order of ld.CIT(A) is accordingly set aside and this issue is remanded to the AO for decision afresh, after due opportunity of hearing to the Assessee. Thus we remand this issue back to the Ld. AO. The Ld. AO is directed to carry necessary verification as directed hereinabove. Assessee is directed to file all relevant documents as called for support the claim. Ld. AO is then to consider the claim in accordance with law. Needless to say that proper opportunity of being heard to be granted to assessee. Assessee's appeal is allowed for statistical purposes.
|