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2019 (4) TMI 2126 - MADRAS HIGH COURTValuation of shares held by the Assessee in a closely held Private limited Company - restriction of a lock in period - Tribunal holding that the shares owned by the assessee could not be valued as per the rate quoted in the stock exchange as the assessee was bound by a lock in period, and could not sell those shares at that time - HELD THAT:- Both the parties fairly submit that the controversy involved in the present Tax Case about the valuation of shares held by the Assessee in a closely held Private limited Company has to be made as per Rule 11 in Part C of Schedule III, which stood omitted by Finance Act, 1992, with effect from 1.4.1993, but, since the Assessment Year in the present case is 1992-93, Rule 11 in part C of Schedule III will be applicable, which provides for, valuation to be made for Unquoted Equity Shares in Companies other than Investment Companies. As decided in Commissioner of Wealth Tax, Chennai v. Thirupathy Kumar Khemka [2012 (10) TMI 69 - MADRAS HIGH COURT] that the shares held in promoters' quota for a lock-in period could be allowed by adopting the methodology under Rule 11. Thus the Assessing Authority shall adopt the valuation of the Shares in terms of Rule 11 as it stood applicable to Assessment Year 1992-93 in question.
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