https://www.taxtmi.com/caselaws?id=18069 For gift-tax valuation of unquoted equity shares, the yield method is treated as the proper basis where the central question is whether consideration was inadequate so that the excess may be taxed as a deemed gift. A break-up valuation may estimate market value, but by itself it does not establish inadequacy of consideration under section 4(1)(a) of the Gift-tax Act, 1958. The commentary distinguishes wealth-tax valuation authorities as arising in a different statutory context and notes that the later Revenue reliance did not displace the settled gift-tax approach. The Tribunal's application of the yield method is therefore presented as correct on the stated facts. en-us Mon, 09 Sep 1996 00:00:00 +0530 Sat, 26 Sep 2009 15:33:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18069 For gift-tax valuation of unquoted equity shares, the yield method is treated as the proper basis where the central question is whether consideration was inadequate so that the excess may be taxed as a deemed gift. A break-up valuation may estimate market value, but by itself it does not establish inadequacy of consideration under section 4(1)(a) of the Gift-tax Act, 1958. The commentary distinguishes wealth-tax valuation authorities as arising in a different statutory context and notes that the later Revenue reliance did not displace the settled gift-tax approach. The Tribunal's application of the yield method is therefore presented as correct on the stated facts. Case-Laws Income Tax Mon, 09 Sep 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18069