TMI Blog1981 (12) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... as follows : " Whether it has been rightly held that shares of T. V. Sundaram Iyengar and Sons (P.) Ltd. should be valued for gift-tax assessment at Rs. 107.34 per share and not at Rs. 134.82 per share ? " The question for consideration is about the valuation of unquoted shares of a private company. The valuation in such cases is done by following the break-up value method. That is to say, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the company as on March 31, 1970, and March 31, 1971, respectively. The Gift-tax Officer determined the value of the gift per share at Rs. 134.82 working it on the basis of the balance-sheet as on March 31, 1971, because this date was very near the date of the taxable gifts, namely, March 22, 1971. The Tribunal, however, did not agree with this method of computation by the Gift-tax Officer. The Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was made only on March 22, 1971. The Tribunal did not, however, take note of the subsequent balance-sheet as on March 31, 1971, for the technical reason that the balance-sheet was subsequent to the date of the gift, namely, March 22, 1971. It is this decision of the Tribunal which is the subject-matter of challenge in the question of law which we have referred to at the beginning of this judgmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equent to the date of the gift in view of its proximity to the date of gift. For the same reasons, we hold that in this case also, the Tribunal was not justified in disregarding the position of the assets and liabilities of the company as on March 31, 1971. The frame of the question of law expects us to say which value per share, in terms of rupees and paise, is the correct valuation. Within the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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