2004 (1) TMI 17

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e instance of the Revenue, the following question of law has been referred for our opinion:- "Whether the Appellate Tribunal is right in law and on facts in directing the Assistant Controller of Estate Duty to make valuation of shares of a private limited company in accordance with rule 1D of the Wealth-tax Rules and not in accordance with the general break up method?" On the date of his dea....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....in the balance sheet and came to the conclusion that the value would be Rs. 2,256 per share. The value of Rs. 3,19,981 declared by the accountable person was increased at Rs. 4,65,736 by the Assistant Controller of Estate Duty which was confirmed by the Controller of Estate Duty (Appeals). The respondent-assessee carried the matter in appeal before the Tribunal. The Tribunal held that rule 1D o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....annot be faulted so long as the method chosen is one of the recognised methods, though less popular. The breakup method based upon the balance-sheet of the company, incorporated in rule 1D, is a fairly simple one. Rule 1D has to be followed in valuing each and every case of unquoted equity shares of a company (other than an investment company or a managing agency company). It is not a matter of ch....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of valuation prescribed under the Wealth-tax Act has to be adopted. In our view also, since the method of valuation for valuing unquoted equity shares has been prescribed in the Wealth-tax Rules, in the absence of any such rule of valuation under the Estate Duty Act or the Estate Duty Rules, the method of valuation prescribed under the Wealth-tax Act is required to be adopted. We are accordingl....