AO cannot invoke Section 56(2)(viib) if Discounted Cash Flow method used for Share Valuation

DCIT Vs Hometrail Buildtech Pvt. Ltd. (ITAT Delhi)

The case of DCIT Vs Hometrail Buildtech Pvt. Ltd. before the ITAT Delhi revolves around the contentious issue of share valuation under section 56(2)(viib) of the Income-tax Act, 1961. The Revenue contested the deletion of an addition of Rs. 8 crores made by the Assessing Officer, arguing that the Discounted Cash Flow (DCF) Method used by the assessee for share valuation was incorrect.

The crux of the matter lies in the method chosen for va

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