https://www.taxtmi.com/caselaws?id=286548 For valuation of restricted shares in a private company under section 7(5) of the Finance Act, 1894, the hypothetical open market sale is assessed on the basis of what a willing purchaser would reasonably need to know, not merely on published information. The Court rejected a valuation approach tied to what a particular board would disclose, because that would make tax consequences depend on the board's choice. It also rejected limiting the exercise to public accounts alone, since a prudent purchaser would seek other material facts, including later trading results and confidential matters affecting prospects. The purchaser is therefore attributed with information reasonably obtainable by inquiry, and the valuation was increased accordingly. en-us Wed, 29 Jan 1969 00:00:00 +0530 Tue, 03 Mar 2020 13:17:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=286548 For valuation of restricted shares in a private company under section 7(5) of the Finance Act, 1894, the hypothetical open market sale is assessed on the basis of what a willing purchaser would reasonably need to know, not merely on published information. The Court rejected a valuation approach tied to what a particular board would disclose, because that would make tax consequences depend on the board's choice. It also rejected limiting the exercise to public accounts alone, since a prudent purchaser would seek other material facts, including later trading results and confidential matters affecting prospects. The purchaser is therefore attributed with information reasonably obtainable by inquiry, and the valuation was increased accordingly. Case-Laws Indian Laws Wed, 29 Jan 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=286548