Rejection of DCF method for valuing CCPS unjustified as it is in accordance with Rule 11UA: ITAT Ahmedabad

JCIT (OSD) Vs Magnet Buildtech Pvt Ltd (ITAT Ahmedabad) ITAT Ahmedabad held the Discounted Cash Flow Method [DCF method] adopted by the assessee for valuing the CCPS is legitimate and in accordance with Rule 11UA of the Income Tax Rules. The AO cannot reject the method chosen by the assessee if it is prescribed by law. Facts- The case of the assessee was selected for the limited scrutiny by issuing notices u/s.143(2) and 142(1) of the Act. During the course of assessment proceedings, it was observed by the AO that the assessee-company had issued 7,99,900 Compulsory Convertible Preference Share...