ITAT Hyderabad Deletes Sec 56(2)(viib) Addition; AO Cannot Alter Assessee’s DCF Valuation

DIABETOMICS Medical Private Limited Vs ACIT (ITAT Hyderabad) ITAT Hyderabad Deletes Sec 56(2)(viib) Addition – AO Cannot Change DCF Valuation Method Adopted by Assessee In Diabetomics Medical Pvt. Ltd. vs ACIT (AYs 2016-17 to 2018-19), the ITAT Hyderabad allowed the assessee’s appeals and held that the AO had no jurisdiction to substitute the valuation method chosen by the assessee while invoking sec 56(2)(viib). The company, a start-up manufacturing innovative medical diagnostics, issued CCPS at ₹720 per share based on a Chartered Accountant’s DCF valuation; however, the AO rejected D...