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Section 37 of the Estate Duty Act, 1953, read with rule 1D of the Wealth-tax Rules, 1957 - Valuation of shares - Whether value of unquoted shares of company should be valued in accordance with rule 1D for purpose of estate duty - Held, yes - Whether such valuation is to be made on basis of balance-sheet drawn up on date immediately preceding valuation date - Held, yes FACTS The question for consideration under the instant reference was whether value of shares held by the deceased at the time of his death should be valued in accordance with rule 1D on the basis of its published balance-sheet available on the date of death. HELD The value of unquoted shares of a company could be valued in accordance with rule 1D for the purpose of estate duty also. Explanation 1 to rule 1D itself makes it clear that the valuation in accordance with rule 1D is to be made on the basis of the balance-sheet drawn up on a date immediately preceding the valuation date. Note : The case was decided in favour of the accountable person. CASES REFERRED TO Jehangir Mahomedali Chagla v. M.V. Subrahmanian, Addl. First Asstt. CED [1985] 155 ITR 637 (Bom.) and CED v. J. Krishna Murthy [1974] 96 ITR 87 (Kar.). Dr. V. Balasubramanian, J.P. Deodhar and K.C. Sidhwa for the Applicant . Miss Vasanti B. Patel, Miss Rupal Vora and C.B. Mehta for the Respondent. JUDGMENT T.D. Sugla, J.-In this departmental reference, the Tribunal has referred to this court only one question of law under section 64(1) of the Estate Duty Act, 1953. The question is: "Whether, on the facts and in the circumstances of the case, the value of the shares of Daruwala Brothers Pvt. Ltd. held by the deceased at the time of his death should be valued in accordance with rule ID of the Wealth-tax Rules, 1957, .on the basis only of its published balance-sheet as on June 30, 1969 ?" Counsel are agreed that, in view of our court's…

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