https://www.taxtmi.com/caselaws?id=168451 In valuing shares of private companies under the Gift-tax Act and Rules, a bona fide provision for taxation was treated as a real liability and had to be deducted because share value was to reflect real net assets, including genuine debts and contingent liabilities. By contrast, an amount shown as proposed dividend on the valuation date was not deductible, since no enforceable debt arises until declaration and undeclared profits remain part of company assets. On that basis, the valuation was held defective for omitting the tax provision, while the proposed dividend deduction was rejected. en-us Mon, 16 Mar 1964 00:00:00 +0530 Tue, 03 Mar 2015 12:59:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168451 In valuing shares of private companies under the Gift-tax Act and Rules, a bona fide provision for taxation was treated as a real liability and had to be deducted because share value was to reflect real net assets, including genuine debts and contingent liabilities. By contrast, an amount shown as proposed dividend on the valuation date was not deductible, since no enforceable debt arises until declaration and undeclared profits remain part of company assets. On that basis, the valuation was held defective for omitting the tax provision, while the proposed dividend deduction was rejected. Case-Laws Income Tax Mon, 16 Mar 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168451