https://www.taxtmi.com/caselaws?id=26929 For gift-tax valuation of unquoted shares, the open market value on the date of gift must be determined by a recognised method. In the absence of a specific Gift-tax Act rule, the valuation approach in rule 1D of the Wealth-tax Rules, 1957 was treated as the proper guide. The Kerala HC held that the Tribunal could not depart from that settled method and substitute an arbitrary figure based on proposed legislation or assumed market impact. The reduction of the gifted shares to Rs. 30 per share was therefore unjustified, and the valuation based on Rs. 40.25 per share was upheld. en-us Mon, 10 Jun 1985 00:00:00 +0530 Tue, 09 Feb 2010 15:02:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26929 For gift-tax valuation of unquoted shares, the open market value on the date of gift must be determined by a recognised method. In the absence of a specific Gift-tax Act rule, the valuation approach in rule 1D of the Wealth-tax Rules, 1957 was treated as the proper guide. The Kerala HC held that the Tribunal could not depart from that settled method and substitute an arbitrary figure based on proposed legislation or assumed market impact. The reduction of the gifted shares to Rs. 30 per share was therefore unjustified, and the valuation based on Rs. 40.25 per share was upheld. Case-Laws Income Tax Mon, 10 Jun 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26929