1981 (12) TMI 4

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....of law in this reference, which is under the Gift-tax Act, 1958 (" the Act "), is as follows : " Whether it has been rightly held that shares of T. V. Sundaram Iyengar and Sons (P.) Ltd. should be valued for gift-tax assessment at Rs. 107.34 per share and not at Rs. 134.82 per share ? " The question for consideration is about the valuation of unquoted shares of a private company. The valuation ....

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....n this question of law are figures arrived at on the basis of the balance-sheets of the company as on March 31, 1970, and March 31, 1971, respectively. The Gift-tax Officer determined the value of the gift per share at Rs. 134.82 working it on the basis of the balance-sheet as on March 31, 1971, because this date was very near the date of the taxable gifts, namely, March 22, 1971. The Tribunal, ho....

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....subsequent to March 31, 1970. This was because, according to the Tribunal, the gift was made only on March 22, 1971. The Tribunal did not, however, take note of the subsequent balance-sheet as on March 31, 1971, for the technical reason that the balance-sheet was subsequent to the date of the gift, namely, March 22, 1971. It is this decision of the Tribunal which is the subject-matter of challe....

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....ument and directed the Tribunal to take note of the position in the balance-sheet subsequent to the date of the gift in view of its proximity to the date of gift. For the same reasons, we hold that in this case also, the Tribunal was not justified in disregarding the position of the assets and liabilities of the company as on March 31, 1971. The frame of the question of law expects us to say wh....