https://www.taxtmi.com/caselaws?id=56183 Unquoted shares in a closely held company were to be valued for gift-tax purposes on the profit-earning basis, not on break-up value, where market quotations were unavailable and dividends did not reflect true earning capacity. The Tribunal applied the Supreme Court's approach that maintainable profits provide the proper valuation method in such cases. On the facts, the company's financial statements showed substantial profits, so the lower authority's break-up valuation could not stand. The matter was remitted for fresh valuation on maintainable profits, with a proper opportunity of hearing to the assessee before any reassessment that could increase the valuation. en-us Fri, 02 Aug 1985 00:00:00 +0530 Thu, 02 Dec 2010 11:31:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56183 Unquoted shares in a closely held company were to be valued for gift-tax purposes on the profit-earning basis, not on break-up value, where market quotations were unavailable and dividends did not reflect true earning capacity. The Tribunal applied the Supreme Court's approach that maintainable profits provide the proper valuation method in such cases. On the facts, the company's financial statements showed substantial profits, so the lower authority's break-up valuation could not stand. The matter was remitted for fresh valuation on maintainable profits, with a proper opportunity of hearing to the assessee before any reassessment that could increase the valuation. Case-Laws Income Tax Fri, 02 Aug 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56183