TMI Blog1988 (8) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... 27, 1969. The deceased, at the time of death, held shares of M/s. Detinners Pvt. Ltd., M/s. Metale Products Pvt. Ltd. and M/s. Bengal Cold Storage Pvt. Ltd. These were unquoted shares. The Assistant Controller, while valuating these shares on the break-up method had taken into account the value of the goodwill of these companies though not shown in the balance-sheets of the companies concerned. In this way, he valued the shares of (1) M/s. Detinners Pvt. Ltd. at Rs. 4,732 per share (2) M/s. Metale Products Pvt. Ltd. at Rs. 259.20 per share and (3) M/s. Bengal Cold Storage Pvt. Ltd. at Rs. 73.60 per share. Aggrieved by the said action of the Assistant Controller, the assessee brought the matter by way of appeal before the Appellate Contro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dmitted position that these shares in question are not quoted in the stock exchange. Under section 36 of the Estate Duty Act, 1953, the principal value of these shares has to be estimated to be the price which, in the opinion of the Controller, it would fetch if sold in the open market at the time of the deceased's death. No rules are made under the 1953 Act, prescribing the manner in which the value of unquoted shares may be determined for the purpose of estate duty. As laid down by the Mysore High Court in the case of CED v. J. Krishna Murthy [1974] 96 ITR 87, which has been followed by the Appellate Controller in the absence of rules under the 1953 Act, valuation for purposes of the Act has to be made in accordance with well-recognised m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicable for valuation of unquoted shares for the purpose of estate duty ignoring the provisions of sections 36 and 37 of the Estate Duty Act, 1953 ? 2. When, for the Wealth-tax Act, valuation of unquoted shares has to be done in accordance with the Wealth-tax (Amendment) Rules, 1967, taking the last published balance-sheet as the basis, whether the Tribunal is right in placing the same value for the purpose of estate duty assessment resulting in non-consideration of other items not covered by the Wealth-tax Rules going into the determination of the value of the shares for estate duty purposes ? " The Appellate Tribunal, after hearing both sides, declined to refer question No. 2 as it records nothing but an argument in support of the st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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