1999 (1) TMI 7

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....gift-tax case is preferred by the Revenue against the order of the Income-tax Appellate Tribunal, Hyderabad-B Bench, dated April 24, 1991, rejecting the plea of the Revenue to refer the points of law for decision by this court. The dispute is with regard to computation of the value of the unquoted equity shares of Sri Ramdas Motor Transport Ltd. The assessees are the shareholders of S.R.M.T. Lt....

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....gment holding that unquoted equity shares of the company have to be valued under the yield method only even for gift tax purposes relying upon the judgment of the Supreme Court in CGT v. Executors and Trustees of the Estate of Late Sh. Ambalal Sarabhai [1988] 170O ITR 144 which was followed by this court in Renuka (D) (Dr.) v. (CWT [1989] 175 ITR 615. Mr. S. R. Ashok, learned counsel appearing ....

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....ocedure and valuation should be by the break-up method and that the lower authorities had correctly valued valued the shares with reference to its existing assets, for the purpose of determining the taxable gift. The Tribunal has refused to refer the matter on the ground that no question of law arises in view of the judgments of the Supreme Court and of this court in CGT v. Executors and Tru....

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....lating the computation of wealth by break-up method, was mandatory in nature and not directory and that there is no option, but to follow the valuation envisaged under the said rules, thus, making a deviation from the view earlier taken by the Supreme Court in CGT v. Executors and Trustees of the Estate of Late Sh. Ambalal Sarabhai [1988] 170 ITR 144 and Renuka (D.) (Dr.) v. CWT [1989] 175 ITR 615....