https://www.taxtmi.com/caselaws?id=60615 Valuation of gifted unquoted shares of a private company under the Gift-tax Act turns on the open-market price principle under section 6, with the prescribed method in section 6(3) and rule 10 applying only where direct market valuation is not feasible. For a going concern not ripe for liquidation, the profit earning or yield method is ordinarily the recognised basis, while the break-up value method is reserved for exceptional cases. Rule 10(2) does not make break-up valuation mandatory for such shares, and the authorities cited by the Revenue did not displace the Supreme Court guidance favouring yield valuation on these facts. en-us Wed, 22 Sep 1993 00:00:00 +0530 Fri, 07 Jan 2011 12:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60615 Valuation of gifted unquoted shares of a private company under the Gift-tax Act turns on the open-market price principle under section 6, with the prescribed method in section 6(3) and rule 10 applying only where direct market valuation is not feasible. For a going concern not ripe for liquidation, the profit earning or yield method is ordinarily the recognised basis, while the break-up value method is reserved for exceptional cases. Rule 10(2) does not make break-up valuation mandatory for such shares, and the authorities cited by the Revenue did not displace the Supreme Court guidance favouring yield valuation on these facts. Case-Laws Income Tax Wed, 22 Sep 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60615