https://www.taxtmi.com/caselaws?id=6364 For valuation of shares in a private limited company under section 7 of the Wealth-tax Act, 1957, the open-market value is ordinarily to be determined by the yield or earnings basis reflecting maintainable profits, because a going concern should be valued by its profit-earning capacity rather than a hypothetical liquidation figure. The dividend and earnings methods may be used together with necessary adjustments for abnormal expenses or distorted dividend policy. Break-up value is confined to exceptional cases, such as where the company is ripe for winding up or reliable estimation of future profits is not possible; therefore, the break-up value method is not sustainable merely because the company is private. en-us Wed, 13 Sep 1972 00:00:00 +0530 Thu, 15 Jan 2026 11:46:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6364 For valuation of shares in a private limited company under section 7 of the Wealth-tax Act, 1957, the open-market value is ordinarily to be determined by the yield or earnings basis reflecting maintainable profits, because a going concern should be valued by its profit-earning capacity rather than a hypothetical liquidation figure. The dividend and earnings methods may be used together with necessary adjustments for abnormal expenses or distorted dividend policy. Break-up value is confined to exceptional cases, such as where the company is ripe for winding up or reliable estimation of future profits is not possible; therefore, the break-up value method is not sustainable merely because the company is private. Case-Laws Wealth-tax Wed, 13 Sep 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6364