Discount on valuation of unquoted equity shares requires review and remedial correction of erroneous tax assessments. Rule 1D of the Wealth-tax Rules sets the valuation method for unquoted equity shares and allows a discount of 25 per cent where companies have not paid dividends continuously for six accounting years. Revenue Audit found officers applying an incorrect discount from an outdated manual, causing under-assessments. A corrigendum had been issued but was not universally adopted. The Board directs a review of all similar cases to be completed by June 1972 and immediate remedial action, and requires Commissioners to inform all wealth-tax officers and ensure timely correction of errors.
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Discount on valuation of unquoted equity shares requires review and remedial correction of erroneous tax assessments.
Rule 1D of the Wealth-tax Rules sets the valuation method for unquoted equity shares and allows a discount of 25 per cent where companies have not paid dividends continuously for six accounting years. Revenue Audit found officers applying an incorrect discount from an outdated manual, causing under-assessments. A corrigendum had been issued but was not universally adopted. The Board directs a review of all similar cases to be completed by June 1972 and immediate remedial action, and requires Commissioners to inform all wealth-tax officers and ensure timely correction of errors.
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