Law:

Section:

Section 6 of the Gift-tax Act, 1958, read with rule 10(2) of the Gift-tax Rules, 1958 - Valuation of gifts - Shares - Assessment year 1982-83 - Assessee, who was directly interested in control and management of 'H' Ltd., made a gift of its shares - Assessee declared its value on basis of yield method - However, Assessing Officer rejected same and fixed value of shares in accordance with rule 10(2) - Whether in case of a closely-held company, if value of shares fixed on basis of balance sheet is higher than that fixed by following yield method, company or an individual concerned with it cannot be permitted to question it, unless he is able to show that on account of competition, recession or any other relevant factor, actual yield value is less than that determined with reference to value of assets - Held, yes - Whether it would not be open to company or individual concerned with its affairs to say that balance sheet does not reflect correct position regarding assets or that value of shares cannot be ascertained with reference thereto and, such an objection can be raised only by revenue - Held, yes - Whether since nothing was pointed out on behalf of assessee to show that value was not ascertainable with reference to assets of company, Assessing Officer was justified in fixing value of shares on basis of balance sheet in accordance with rule 10(2) - Held, yes FACTS The assessee made a gift of certain number of shares of a company and declared the same in the return. The Gift-tax Officer made a reference under section 15(6), read with section 16A of the Wealth-tax Act, 1957, to Valuation Officer. The Valuation Officer fixed the value of shares on the basis of the immediate preceding balance sheet. The Gift-tax Officer accepted that value which was more than the declared value and made assessment thereon. In appeal, the Commissioner (Appeals) rejected the assessee's contention that the assets in the balance sheet did not depict the true picture and confirmed the view taken by the Gift-tax Officer. On further appeal, the Tribunal held that unquoted equity shares had to be valued on the basis of yield method. On reference : HELD Valuation of the shares has to be…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492