Addition of premium amount cannot be made solely on the basis of valuation of loss-making company

India Today Online Pvt. Ltd. Vs ITO (ITAT Delhi)

Conclusion: Addition of difference premium amount of Rs. 20/- per share in assessee-company on the ground that M company was a loss-making company was not justified as assessee had substantiated the shares issued at Rs. 30 per share was less than the FMV  and the underlying asset of assessee company, i.e., M was valued as per DCF method which was a recognised method where future projections of various factors by applying hindsight view and it could not be matched with actual

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