“NAV method”

TECHPARK HOTELS PVT LTD,GURGAON vs. ADDI. CIT SPECIAL RANGE-9, NEW DELHI

In the result, the appeal filed by the Assessee is allowed

Bench: Shri S. Rifaur Rahman & Shri Vimal Kumartechpark Hotels Pvt. Ltd., Addl. Cit, Ground Floor, Central Wing, Special Range-9, Thapar House 124, Janpath, Vs. New Delhi. New Delhi-110001. Pan-Aabce5833H (Appellant) (Respondent) Assessee By Shri Neeraj Jain, Adv. & Shri Tavish Verma, Adv. Ms. Harpreet Kaur Hansra Sr. Dr Department By Date Of Hearing 20.01.2026 Date Of Pronouncement 20.03.2026 O R D E R Per Vimal Kumar, Jm: The Appeal Filed By The Assessee Is Against Order Dated 11.09.2019 Of The Learned Commissioner Of Income Tax (Appeals), New Delhi [Hereinafter Referred To As ‘The Ld. Cit(A)’] Passed U/S 250 Of The Income Tax Act, 1961, [Hereinafter Referred To As ‘The Act’] Arising Out Of Assessment Order Dated 30.12.2017 Of The Ld. Assessing Officer U/S 143(3) Of The Act For Assessment Year 2015-16. 2. Brief Facts Of The Case Are That The Assessee Filed Return Declaring Loss Of Rs.23,06,28,106/- On 30.11.2015. Notice U/S 143(2) Dated 22.09.2016 Was Issued. Notices U/S 142(1) Were Issued. Sh. Nikhil Agarwal & Shri Nirmal Malpani, Ca Appeared & Filed Details. On Completion Of Proceedings, Ld. Ao Vide Order Dated Techpark Hotels Pvt. Ltd. Vs. Acit

facts and in law in rejecting the Discounted Cash Flow ['DCF'] method for valuation of shares and in considering the Net Asset Value ['NAV'] method without appreciating that the FMV of the shares was computed keeping in view the future growth of the enterprise and was certified by a Chartered ... variation was a result of certain unforeseen factors. 7. That the CTT(A) erred on facts and in law in failing to appreciate that NAV method cannot be taken as the price at which transaction would take place in case of going concern and moreover, valuation of share

K. G. FINVEST PRIVATE LIMITED,EAST DELHI vs. CENTRAL CIRCLE 29, DELHI, NEW DELHI

In the result, the appeal of the assessee is partly allowed

Bench: Shri Mahavir Singh & Shri Manish Agarwal[Assessment Year : 2015-16] K.G. Finvest Pvt. Ltd. Vs Central Circle-29, F-24 F/Floor, I.Sc Pankaj Delhi Central Market, Mandawali Fazalpur, Nr Natraj Vihar Society, I.P. Extn., New Delhi- 110092. Pan-Aaack4032H Appellant Respondent Appellant By Shri Sudesh Garg, Adv. & Shri Prince Bansal, Ca Respondent By Shri Jitender Singh, Cit Dr Date Of Hearing 26.11.2025 Date Of Pronouncement 29 .01.2026 Order Per Manish Agarwal, Am : The Present Appeal Is Filed By Assessee Against The Order Dated 17.06.2025 Passed By Ld. Commissioner Of Income Tax (A)-30, New Delhi [“Ld. Cit(A)”] In Appeal No. Cit(A), Delhi-5/10256/2017-18 U/S 250 Of The Income Tax Act, 1961 [“The Act”] Arising Out Of Assessment Order Dated 29.12.2017 Passed U/S 143(3) Of The Act Pertaining To Assessment Year 2015-16. 2. Brief Facts Of The Case Are That Assessee Company Has Filed Its Return Of Income On 28.09.2015, Declaring Total Income Of Inr 5,09,130/-. The Case Was Selected Under Limited Scrutiny & Notice U/S 143(2) Followed By Statutory Notices Issued U/S 142(1) Were Issued From Time To Time. In Response, Assessee Filed Submissions & Relevant Details Alongwith Evidences. The Ao Observed That The Assessee Issued 8,40,000 Equity Shares Of Inr 10/- Each At A Premium Of Inr 490/- Each & The Valuation Of Shares Was Done By Following Dcf Method. However, The Ao Rejected The Method Of Valuation Of Share Adopted By The Assessee & Re-Computed The Value Per Share At Inr 50.35 Per Share As Per Nav Method & Made Addition Of Differential Amount Of Inr 37,77,06,000/- U/S 56(2)(Viib) Of The Act.

method of valuation of share adopted by the assessee and re-computed the value per share at INR 50.35 per share as per NAV method and made addition of differential amount of INR 37,77,06,000/- u/s 56(2)(viib) of the Act. 3. Against the said order, assessee ... Income Tax Rules, 1962 (“the Rules”) where two methods are prescribed for valuation of unquoted equity shares namely, (i) Net Asset Value Mehtod (NAV method) & (ii) Discounted Free cash Flow Method (DCF method). The assessee has opted for DCF method for valuation of its share as provided in clause

RIVET HEALTH CLUB PVT LTD,FARIDABAD vs. ITO WARD - 2(2), FARIDABAD

that the assessing officer cannot examined or substitute\nits own value in place of the valuation arrived by the assessee\neither DCF Method or NAV Method, the commercial expediency\nhas to be seen from the point view of businessman. Further\nheld that if law provides the assessee ... tinkered with DCF methodology and rejected\nby comparing the projections with actual figures. The Rules provide\nfor two valuation methodologies, one is assets based NAV method\nwhich is based on actual numbers as per latest audited financials of\nthe assessee company. Whereas in a DCF method, the value is based

BRAWNY NIVESH P.LTD,NEW DELHI vs. ACIT, CENTRAL CIRCLE-13, NEW DELHI

In the result, appeal of the assessee is partly allowed

Bench: Shri Mahavir Singh & Shri Brajesh Kumar Singh

valuation of such equity. The relevant rule in this regard is rule 11 UA(1) cb. The AO has carried out the valuation on NAV method. The appellant assessee is in clear mischief of the same, hence the premium charged by the assessee is to be subjected to the provisions

JCIT(OSD), NEW DELHI vs. MANISH VIJ, DELHI

In the result, the appeal of the revenue is dismissed

Bench: Shri C. N. Prasad & Shri M. Balaganeshjcit, Vs. Manish Vij, A-1,/ 134, 1St Floor, Sk (Osd), Delhi Enclave, South West Delhi (Appellant) (Respondent) Pan: Aagpv7555H

share as on 20.04.2021 in accordance with Rule 11UA of the Income Tax Rules by adopting Net Asset Value (NAV) method. 4. The assessee on 15.02.2022 sold 595 shares of CGPL of Rs. 7,29,938/- per share to M/s Nepean Investments Trust –II on the basis of valuation report ... under:- “6.5 The submissions of the appellant are perused. Rule 11UAA read with rule 11UA gives the option to assessee to follow either NAV method or DCF method for determining fair market value of unlisted shares as on the date on which the shares of an unlisted company are transferred