https://www.taxtmi.com/caselaws?id=17084 Gifted cumulative redeemable preference shares of a private company were required to be valued under the statutory scheme in the Gift-tax Act and Rules. Section 6(1) adopts open-market value, while Section 6(3) applies where that value cannot be estimated because the property is not saleable in the open market, in which case the prescribed method must be used. Rule 10 governs valuation of shares in a private company with restrictive transfer provisions and directs valuation by reference to company assets, with the rule-based method prevailing over a yield-only approach. The valuation therefore had to follow Rule 10, and the yield method alone was rejected. en-us Wed, 01 Oct 1997 00:00:00 +0530 Tue, 15 Sep 2009 11:19:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17084 Gifted cumulative redeemable preference shares of a private company were required to be valued under the statutory scheme in the Gift-tax Act and Rules. Section 6(1) adopts open-market value, while Section 6(3) applies where that value cannot be estimated because the property is not saleable in the open market, in which case the prescribed method must be used. Rule 10 governs valuation of shares in a private company with restrictive transfer provisions and directs valuation by reference to company assets, with the rule-based method prevailing over a yield-only approach. The valuation therefore had to follow Rule 10, and the yield method alone was rejected. Case-Laws Income Tax Wed, 01 Oct 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17084