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Discounted Cash Flow method for valuation of share is recognized method of valuation
Case Law Details
- Case Name
- Thinkstations Learning Private Limited Vs ACIT (ITAT Delhi)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2015-16
- Courts
- All ITAT, ITAT Delhi
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Thinkstations Learning Private Limited Vs ACIT (ITAT Delhi)
ITAT Delhi held that rejection of Discounted Cash Flow (DCF) Method for valuation of share price unjustified as that the methodology adopted was a recognized method of valuation and the Revenue was unable to show that the assessee adopted a demonstrably wrong approach.
Facts- In the course of assessment proceedings, AO noticed that assessee allotted 1,42,856 equity shares of Rs.10/- each at a premium of Rs.130/- per share. AO noticed that the assessee followed Discounted Cash Flow (DCF) Method for valuation of share price. AO referrin...
Author Info
Can weighted average method be used? that is a combination of DCF and NAV?