AO Cannot Replace DCF Valuation with Own Estimate in Share Premium Case

DCIT Vs Max Hospitals and Allied Services Limited (ITAT Mumbai)

The dispute arose from additions made by the Assessing Officer (AO) under Section 56(2)(viib) of the Income Tax Act, 1961, relating to share premium received by Max Hospitals and Allied Services Ltd. The company, a start-up in the healthcare sector, had issued shares at a premium, valued using the Discounted Cash Flow (DCF) method as permitted under Rule 11UA(2) of the Income Tax Rules. The valuation report was prepared by a Chartered Acco

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