Valuation of Shares Issued on Premium : AO cannot reject DCF valuation Method adopted by Assessee

M/s. Innaccel Technologies Private Ltd. Vs ACIT (ITAT Bangalore) The A.O. was of the view that the shares of the company have been over valued and accordingly asked the assessee to justify the valuation. After considering the explanations of the assessee, the A.O. took the view that the valuation report has been prepared on the basis of projected financial statements, which deviate widely vis-a-vis actual financials. Accordingly, the A.O. rejected the valuation report of the assessee. Then the A.O. proceeded to determine the valuation of the shares under net Asset value/Book value method presc...