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TMI Blog1984 (7) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 100 per share. In a note attached to the return the assessee has stated that the value of the shares in the company has been taken at Rs. 100 per share as these shares are not marketable and the company has fixed the value of the shares at Rs. 100 per share in the Articles of association. The WTO had accepted the value returned. The CWT has pointed out that he had done this inspite of the fact that the assessments for earlier years 1979-80 and 1980-81 the assessee himself had adopted the market value per share at Rs. 187. The Commissioner considered that acceptance of this value by the WTO was erroneous insofar as it is prejudicial to the interest of revenue and hence took action under s. 25 (2). He issued notice to show cause why dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he words used in s. 7 "If sold in open market" do not contemplate actual sale or actual state of the market but only enjoins that it should be sold in such a market and on that basis the value is to be found. Finally he has stated that in any event the WTO has merely accepted the face value as market value without going into the question as to whether the claim of the assessee is justified, that the WTO has not found out as to what would be the value of the shares even if the yield method was adopted. He, therefore, held that the assessment made was erroneous and prejudicial to the interests of revenue. He set aside the assessment and directed the WTO to redo the same according to law. 2. The same arguments have been submitted before us by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Smt. Kusumben D. Mahadevia (1980) 124 ITR 799 (Bom). But there is no evidence at all to show that the WTO applied his mined and then accepted the value of Rs. 100 per share. There is also no showing that the value of Rs. 100 per share really represents the market value of the shares. It has been pointed out that there are restrictive clauses in the Articles of Association of the company regarding the transfer of shares but there is no evidence that the WTO had considered the effect of these restrictive clauses in accepting the value of Rs. 100 per share. In the instant case, therefore, there is no evidence at all that there was an attempt on the part of the WTO to determine the market value of share. In these circumstances, we agree with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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