Case Law Analysis
|Income Tax Appellate Tribunal
Section 56(2)(viib) IT Act | Receipt Basis Applies; DCF Method Valid Only If FMV Not Exceeded : ITAT Delhi
ITAT Delhi clarifies that Section 56(2)(viib) of the Income Tax Act operates on a receipt basis, not issuance basis. The tribunal upholds the Discounted Cash Flow (DCF) valuation method but limits tax additions to the excess premium over fair market value (FMV), providing relief to companies issuing shares post-2012-13.