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1987 (12) TMI 31 - SC - Income TaxWhether, on the facts and in the circumstances of the case, the finding of the Tribunal based on the ratio of the case decided by the House of Lords in Lynall v. Inland Revenue Commissioners [1971 (7) TMI 155 - House of Lords Court] and basing the valuation of the shares of Bakubhai and Ambalal Ltd., London, on its balance-sheet as at March 31, 1963, instead of March 31, 1964, is bad in law ? Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in accepting the valuation of the shares as returned by the assessee and deleting ₹ 27,360 added by the Gift-tax Officer, under section 15(3) of the Gift-tax Act, 1958 ? Held that:- The correct principle of valuation applicable to a given case is question of law. But the matter is already two-and-a-half decades old. The gift was in the year 1964. The total gift-tax as now assessed is ₹ 5,661. Upon a fresh determination of the value of the shares adopting the somewhat intricate processes inherent in the " profit-method " of valuation, the difference in the quantum of the tax might, perhaps, not be substantial. The magnitude of the mechanism for refixation of the value of the gifts and the difference in the quantum of the tax it might result in, do not bear a reasonable or sensible proportion. Having regard to the pecuniary involvement in the case, which is obviously small, we think we should not expose the parties to a fresh round of litigation. In this view of the matter, we think the appellant should be content with the declaration of the law on the matter, without disturbing the valuation made by the Tribunal and approved by the High Court, though the principle adopted is not supportable in law. We, therefore, decline to interfere in the matter. The valuation is, therefore, left undisturbed.
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