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TMI Blog2019 (4) TMI 2126X X X X Extracts X X X X X X X X Extracts X X X X ..... s per Rule 11 in Part C of Schedule III, which stood omitted by Finance Act, 1992, with effect from 1.4.1993, but, since the Assessment Year in the present case is 1992-93, Rule 11 in part C of Schedule III will be applicable, which provides for, valuation to be made for Unquoted Equity Shares in Companies other than Investment Companies. As decided in Commissioner of Wealth Tax, Chennai v. Thirupathy Kumar Khemka [ 2012 (10) TMI 69 - MADRAS HIGH COURT ] that the shares held in promoters' quota for a lock-in period could be allowed by adopting the methodology under Rule 11. Thus the Assessing Authority shall adopt the valuation of the Shares in terms of Rule 11 as it stood applicable to Assessment Year 1992-93 in question. - T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1992, with effect from 1.4.1993, but, since the Assessment Year in the present case is 1992-93, Rule 11 in part C of Schedule III will be applicable, which provides for ,valuation to be made for Unquoted Equity Shares in Companies other than Investment Companies. 3. On this issue, a co-ordinate Bench of this Court has held in Commissioner of Wealth Tax, Chennai v. Thirupathy Kumar Khemka ((2012) 259 CTR 260) as under:- 11. When we look at the Rules concerning valuation of shares, Part C of the III Schedule to the Wealth Tax Act, as it then stood, deals with shares or debentures of companies. Rule 9 is a specific Rule providing for the valuation of quoted shares and debentures of the company. Rule 10 deals with valuation on unquoted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... depreciation that may be granted to the shares, remains without any guidelines provided for in Part C of the III Schedule. It is an open secret that in the absence of any such guideline, the depreciation may range from 0 to 100 and it is always a question of debate. Apparently, on account of all these, we feel that the Commissioner of Wealth Tax justifiably adopted Rule 11 of Part C of the III Schedule, which is with reference to unquoted equity shares. By adopting the principle as given under Rule 11, we are neither treating the shares as unquoted shares, nor are we ignoring the fact that the company's shares are quoted shares. All that one does by applying the principle in Rule 11 is to arrive at the valuation of a shares which are qu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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