Proper investigation while arriving at the valuation of the shares of Testeels Ltd. - Income Tax - 903/CBDT

INSTRUCTION NO. 903/CBDT Dated : December 9, 1975 Section(s) Referred: 143 Statute: Income - Tax Act, 1961 It has been brought to the notice of the Board that the shares of Testeels Ltd. were quoted in the Ahmedabad Stock Exchange on 29/3/75 at a price very much lower than the price quoted before 29/3/75. The Stock Exchange authorities have in their publication of official quotations dated 29/8/75 notified that the transactions in respect of shares of the above mentioned Company at Rs. 88 and Rs. 70 which took place on 29/3/75 may be treated expunged. It has been found that these transactions were on "Special terms". The quotation at Rs. 88 and Rs. 70 per share on 29/3/75 at the Ahmedabad Stock Exchange does not, therefore, reflect the correct market price of shares of Testeels Ltd. on that date and hence should not be taken cognizance of for valuation purposes. It may be noted that the share price on 22/3/75 when it was earlier quoted was Rs. 100. 2. This information may please be passed on to the assessing officers for their guidance and they should be advised to make a proper investigation while arriving at the valuation of the shares of this Company.