Hon’ble Delhi High Court upholds the valuation methodology adopted by the tax payer, grants relief from applicability of Section 56(2)(viib) of the ITA (‘Angel Tax’).

The Hon’ble Delhi High Court in its recent ruling1 has quashed the addition made under Section 56(2)(viib) of the Income Tax Act, 1961 (‘ITA’) by upholding the Discounted Cash Flow (DCF) valuation methodology adopted by the assessee for determining the value per share in connection with a fund raising exercise.
RBSA Advisors - Thumbanil Delhi High Court upholds the sanctity of Valuation Report in case of Angel Tax matters Website Inside 2

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