Validity of Share Premium Valuation u/s 56(2)(viib): ITAT Deletes AO’s Addition, Accepts DCF Method

ITAT (Income Tax Appellate Tribunal) deleted the Assessing Officer's (AO) addition made under Section 56(2)(viib) of the Income Tax Act, accepting the Discounted Cash Flow (DCF) method for the valuation of share premium. Section 56(2)(viib) relates to the taxation of share premium in certain cases. The tribunal's acceptance of the DCF method indicates its recognition of this valuation technique for determining the fair value of shares, providing relief to the assessee.