9911796707
TMI Blog1997 (10) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... es of the case, the Tribunal was justified in directing the AO to value the 1000 cumulative redeemable preference shares of M/s Simplex Castings (P) Ltd., Bhilai as per the yield method contrary to the specific provisions of r. 10 and with s. 6(3) of the GT Act, 1958 ?" 2. During the previous year relevant to the asst. yr. 1985-86, the assessee gifted 1000 cumulative redeemable preference shares of M/s Simplex Castings (P) Ltd., Bhilai. In the return of gift, the assessee has returned the value of these shares on the basis of yield method. While completing the assessment, the AO applied the provisions of r. 10 of the GT Rules, 1958 (for short the Rules) with s. 6(3), valued these shares as prescribed therein and the value of these shares ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be determined, value of any property other than cash transferred by way of gift, shall be estimated to be the price which in the opinion of the GTO it would fetch if sold in the open market on the date on which the gift was made. Sub-s. (2) of s. 6 says that if a person makes a gift which is not revocable for a specified period, value of the property gifted shall be the capitalised value of the income from the property gifted during the period for which the gift is not revocable. Sub-s. (3) of s. 6 provides that if the value of any property cannot be estimated under sub-s. (1) because it is not saleable in the open market, the value shall be determined in the prescribed manner. The word 'prescribed' has been defined in s. 2(xix) of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, or in the absence of any such agreement, in the proportion in which the partners or members are entitled to share profits; (c) The total of the amount allocated under cl. (b) to each partner or member together with the capital contributed by him shall be treated as the value of his interest. (4) The value of any other property not saleable in the open market shall be determined in accordance with such guidelines or principles as may be laid down by the Board from time to time by general or special order." Rule 10(2) of the Rules clearly says that where the articles of association of a private company contain restrictive provision as to the alienation of shares, the value of the shares, if not ascertainable by reference to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Learned counsel for the assessee invited our attention to the case of CWT vs. Sharvan Kumar Swarup Co. (1994) 122 CTR (SC) 380 : (1994) 210 ITR 886 (SC). This was also a case under the WT Act wherein their Lordships observed that the procedural law cannot confer vested right. In this case r. 1BB of the WT Rules, 1957 came into force w.e.f. 1st April, 1979 prescribing the method for valuing a house wholly or mainly used for residential purposes and in that context their Lordships observed that r. 1BB has come into force from 1st April, 1979, therefore, assessment would be made on the basis of amended rules. In the present case, question before us, as referred by the Tribunal, is as to how to value the cumulative redeemable preference shar ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
