TaxTMI 
TaxTMI 
Valuation of enquoted equity shares of investment companies and holding companies-Instruction regarding
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.... 2 (WT) of 1967, dated 31-10-67 ([1973] 92 ITR (St.) 2) for valuation of unquoted equity shares- (i) of investment companies other than those which are substantially holding companies; (ii) of investment companies which are substantially holding companies; and (2) Board's Circular No. 118 dated 15-9-73 ([1973] 92 ITR (St.) 1) (in partial modification of Circular date....
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....i.e., the average of- (a) the break-up value of shares based on the book value of the assets and liabilities disclosed in the balance-sheet; and (b) the capitalised value arrived at by applying certain rate of yield of the maintainable profits, has to be discarded. (ii) In the case of a company which is a going concern and whose shares are not quoted on the stock exchange, the profits ....
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....dation........" (iv) The question of application of the break-up value method will depend upon the facts and circumstances of the case. One of the cases of exceptional circumstances referred to in (iii) above can be where the assets of the company comprise wholly or mainly of jewellery, precious stones, etc., and the company carries on business of hiring out such assets. In such a case, if the ....
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....fit and loss account. (iv) The development rebate/investment allowance, in case it is debited in the books of account, will be added back. (v) The appropriate tax liability of the company on the book profits so determined will be deducted. (vi) The profits required for paying dividends on shares with prior rights, i.e., preference shares, shall be excluded. (vii) The average of the com....