TMI Blog1991 (6) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... essee in Messrs. Kalinga Tubes Ltd. came up for consideration during the aforesaid assessment years, the authorities including the learned Appellate Tribunal have passed a common order and have valued the shares as per the break-up method mentioned in rule 1D of the Wealth-tax Rules, 1957. At the behest of the assessee, the following question of law has been referred for the opinion of this court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid shares. It is, therefore, required to be seen as to whether, on its peculiar facts, anything else than the face value is to be taken as the market value of the shares. Section 7 of the Wealth-tax Act, 1957, dealing with the valuation of assets states that the same shall be estimated at the price which, in the opinion of the Wealth-tax Officer, they would fetch if sold in the open market on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n unquoted equity share was its break-up value. As against this, Shri Patnaik refers to the aforesaid decision of the apex court wherein it is said that the yield method is the generally applicable method while the break-up method is the one resorted to in exceptional circumstances or where the company is ripe for liquidation. As against this observation finding place at page 634 of the judgment, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce in the present case nor can it be said that the company in question is ripe for liquidation. Reliance on the break-up method by following Laxmipat Singhania's case [1978] 111 ITR 272 (All) cannot, therefore, be upheld. This apart, in view of the peculiar facts of this case which are related to the long legal dispute between the parties in course of which this court had also required, as already ..... X X X X Extracts X X X X X X X X Extracts X X X X
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