Valuation of unquoted equity shares by DCF method permissible u/r 11UA(2): Delhi HC

Principal Chief Commissioner of Income-tax-1 Vs A.H. Multisoft Pvt. Ltd. (Delhi High Court) Delhi High Court held that valuation of unquoted equity shares held by the assessee by Discounted Cash Flow [DCF] method is permissible under rule 11UA(2) of the Income Tax Rules. Accordingly, appeal of revenue dismissed. Facts- Revenue has preferred the present appeal mainly contesting that ITAT has erred in deleting the addition of Rs.30,37,53,712/- as per the provisions of Section 56(2)(viib). It is also contested that ITAT has erred in ignoring the facts that the Assessing Officer has clearly outlin...