https://www.taxtmi.com/caselaws?id=16427 The High Court of Madras ruled in favor of the taxpayer on all three issues. The court held that the provision for gratuity should be treated as a liability in the valuation of shares based on actuarial valuation. It determined that section 52(2) of the Income-tax Act was not applicable as there was no understatement of consideration. Additionally, the court decided that the value of shares acquired before 1954 should be based on their original value without averaging with bonus shares. The judgment aligned with legal principles and previous decisions, resulting in outcomes against the Department. en-us Thu, 09 Jan 1997 00:00:00 +0530 Mon, 07 Sep 2009 16:50:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16427 The High Court of Madras ruled in favor of the taxpayer on all three issues. The court held that the provision for gratuity should be treated as a liability in the valuation of shares based on actuarial valuation. It determined that section 52(2) of the Income-tax Act was not applicable as there was no understatement of consideration. Additionally, the court decided that the value of shares acquired before 1954 should be based on their original value without averaging with bonus shares. The judgment aligned with legal principles and previous decisions, resulting in outcomes against the Department. Case-Laws Income Tax Thu, 09 Jan 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16427