1991 (6) TMI 46

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....ent years 1959-60 to 1965-66. As a common question relating to valuation of shares held by the assessee in Messrs. Kalinga Tubes Ltd. came up for consideration during the aforesaid assessment years, the authorities including the learned Appellate Tribunal have passed a common order and have valued the shares as per the break-up method mentioned in rule 1D of the Wealth-tax Rules, 1957. At the behe....

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....der/pledge, would be transferred to Shanti Prasad Jain and/or his nominee at the face value of the said shares. It is, therefore, required to be seen as to whether, on its peculiar facts, anything else than the face value is to be taken as the market value of the shares. Section 7 of the Wealth-tax Act, 1957, dealing with the valuation of assets states that the same shall be estimated at the pr....

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....n CWT v. Laxmipat Singhania [1978] 111 ITR 272. It was held that the well accepted method of valuing an unquoted equity share was its break-up value. As against this, Shri Patnaik refers to the aforesaid decision of the apex court wherein it is said that the yield method is the generally applicable method while the break-up method is the one resorted to in exceptional circumstances or where the co....

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....ny is ripe for liquidation. There is nothing before us to show as to what is the exceptional circumstance in the present case nor can it be said that the company in question is ripe for liquidation. Reliance on the break-up method by following Laxmipat Singhania's case [1978] 111 ITR 272 (All) cannot, therefore, be upheld. This apart, in view of the peculiar facts of this case which are related to....