FMV of shares: Jurisdiction of AO to reject valuation methods adopted by Assessee

Canvera Digital Technologies Pvt. Ltd Vs DCIT (ITAT Bangalore) From the details filed, Ld.AO observed that, assessee had computed the value as per DCF method and that there was nothing to suggest that DCF method was an appropriate method to value the shares. Ld.AO rejected DCF method adopted by assessee for the reasons that cash flow from operations were not positive, the growth rate was taken at 50% is unrealistically high and far from reality and assessee was suffering loss year by year. Ld.AO also noted that assessee is a company in which public is not substantially interested and therefore...