Rule 11UA(2)(b)

Rule 11UA(2)(b) — the law in short

What the courts have decided on section Rule 11UA(2)(b), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• PCIT v Cinestaan Entertainment P Ltd High CourtHelps taxpayer
  The department says my DCF projections never came true. Is that enough to tax my share premium?
  No. Valuation is a question of fact and is not an exact science, so a forecast cannot be rejected by comparing it with actual revenues in hindsight. The Revenue must show the methodology adopted was demonstrably wrong.
• Vodafone M-Pesa Ltd v PCIT High CourtHelps taxpayer
  Can the AO switch my valuation from DCF to NAV because the NAV figure suits him better?
  No. The officer may scrutinise the valuation report and may even call for a fresh valuation from an independent valuer, but he cannot change the method the assessee opted for under Rule 11UA — any fresh valuation must stay on the DCF basis.

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.