https://www.taxtmi.com/caselaws?id=66409 Rule 10(2) of the Gift-tax Rules applies only where private company shares can be valued by reference to the company's total assets in a commercially realistic sense. Where transfer restrictions, non-marketability, and discounting mean that a balance-sheet based break-up computation does not reflect real value, the shares fall outside rule 10(2) and must be valued on market-value principles. For a going concern, the yield method is the governing approach recognised in Supreme Court valuation decisions. On the facts described, the break-up method was rejected, the yield or market-value basis was applied, and the appellate valuation was sustained while the departmental appeals failed. en-us Thu, 22 Jul 1982 00:00:00 +0530 Thu, 24 Feb 2011 15:40:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66409 Rule 10(2) of the Gift-tax Rules applies only where private company shares can be valued by reference to the company's total assets in a commercially realistic sense. Where transfer restrictions, non-marketability, and discounting mean that a balance-sheet based break-up computation does not reflect real value, the shares fall outside rule 10(2) and must be valued on market-value principles. For a going concern, the yield method is the governing approach recognised in Supreme Court valuation decisions. On the facts described, the break-up method was rejected, the yield or market-value basis was applied, and the appellate valuation was sustained while the departmental appeals failed. Case-Laws Income Tax Thu, 22 Jul 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66409