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The AO can scrutinize the valuation report and the if the AO is not satisfied with the explanation of the assessee, he has to record the reasons and basis for not accepting the valuation report submitted by the assessee and only thereafter, he can go for own valuation or to obtain the fresh valuation report from an independent valuer and confront the same to the assessee. But the basis has to be DCF method and he cannot change the method of valuation which has been opted by the assessee.

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Sec. 56(2)(viib) of Income Tax Act, 1961—Income From other sources— AO can scrutinize the valuation report and he can determine a fresh valuation either by himself or by calling a determination from an independent valuer to confront the assessee but the basis has to be DCF method and he cannot change the method of valuation which has been opted by the assessee, therefore, matter was restored back to the file of AO for a fresh decision with a direction that AO should follow DCF method - SIGNURE TECHNOLOGIES PVT. LTD. V/s ASSTT. CIT - [2020] 83 ITR (TRIB) 521 (ITAT-BANGALORE)