TMI Blog1983 (1) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... in the balance-sheet of the company as on March 31, 1970, should be taken as the proper value ? " The question arises in connection with an assessment to gift-tax during the assessment year 1971-72 for which the accounting year is that ending on March 31, 1971. During that period the assessee gifted some properties and the dispute here concerns only gift concerning 1,000 shares in Nirlon Synthetic Fibres Chemicals Ltd. These shares were gift by the assessee on March 25, 1971, and this gift was returned for the year 1971-72 showing the value of each share as Rs. 200. The GTO was not prepared to accept the value so returned. He adopted Rs. 398.61 per share, that being the value adopted for such shares in the wealth-tax return for the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et as on March 31, 1970, was Rs. 330 per share. He would have assumed that the same dividend as of the previous year would be paid unless it be that he had special information as to the change in the circumstances of the company or in the profit earning of the company during the year ended March 31, 1971. There being no such case and the shares being not those listed in the stock exchange during the relevant year the value as in the balance-sheet on March 31, 1970, was adopted by the Tribunal. As a consequence the Revenue's appeal was dismissed. It is in these circumstances that the question now referred to us arises. Under s. 6 of the G.T. Act, 1958, the value of any property other than cash transferred by way of gift is to be estimated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... up his share as an honest seller he will not be in position to indicate any information concerning the profit that may be earned during the year ending March 31, 1971. The normal information that he would be possessed of and that he would be able to convey to willing purchaser would be the value as on March 31, 1970, and that based upon the balance-sheet and P L a/c. as on March 31, 1970. May be there are special circumstances within his knowledge which may go either to enhance the value of the shares or reduce their value. If a seller is honest, one may expect him to communicate information about such special circumstances also to a willing buyer. But if there is no material to show that there were any special circumstances in a case th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
