AO cannot change prescribed valuation method opted by assessee- Rule 11UA(2)

Town Essential Private Limited Vs CIT (ITAT Bangalore) Introduction: The case of Town Essential Private Limited vs. CIT (ITAT Bangalore) revolves around the determination of fair market value and the methods used for valuation. The Income Tax Appellate Tribunal (ITAT) Bangalore provided crucial insights into the acceptable valuation methods, emphasizing the significance of the discounted cash flow (DCF) method. Detailed Analysis: The legal framework under section 56(2)(viib) of the Income Tax Act, 1961, mandates that shares issued at a premium should align with the fair market value. The Act a...