https://www.taxtmi.com/caselaws?id=40091 Unquoted shares in a private company are ordinarily to be valued for gift-tax purposes by the profit-earning method, because their real worth depends on earning capacity rather than liquidation value. The break-up value method is not the correct rule for such shares, and balance-sheet figures alone do not state the proper legal standard. Parties cannot agree to a valuation basis that departs from the governing principle. The High Court's adoption of the break-up value approach was therefore incorrect in law, although the valuation already made was left undisturbed and the assessed value was not altered. en-us Fri, 11 Dec 1987 00:00:00 +0530 Wed, 24 Oct 2018 16:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=40091 Unquoted shares in a private company are ordinarily to be valued for gift-tax purposes by the profit-earning method, because their real worth depends on earning capacity rather than liquidation value. The break-up value method is not the correct rule for such shares, and balance-sheet figures alone do not state the proper legal standard. Parties cannot agree to a valuation basis that departs from the governing principle. The High Court's adoption of the break-up value approach was therefore incorrect in law, although the valuation already made was left undisturbed and the assessed value was not altered. Case-Laws Income Tax Fri, 11 Dec 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=40091