COMMISSIONER OF GIFT TAX Vs. H M BIRLA

JUDGEMENT

(1.) IN this reference under S. 26(1) of the GT Act, 1958 ('the Acr') for the asst. yr. 1981-82 the following questions of law have been raised:

(2.) THE assessee filed and appeal before the CIT (A) who directed the GTO to accept the valuation of the shares of Birla Bros.(P) Ltd. as shown by the assessee.

(3.) THE Tribunal following its earlier decisions in the case of Smt. Manarama Devi Birla and in the case of Administrator to the Estate of B.N.Birla (deceased), held that r. 1D is directory and not mandatory. The Tribunal pointed out that the valuation of shares was disclosed by the assessee on the basis of the report of the approved valuer. It was not disputed that the approved valuer determined the valuation of the shares by adopting yield method. The Tribunal found that the valuation determined by the approved valuer and disclosed by the assessee is in accordance with the principles laid down by the Supreme Court in the case of CGT vs. Smt. Kusumben D. Mahadevia (1980) 14 CTR (SC) 366 : (1980) 122 ITR 38. It was held that the CIT (A) was justified in directing the ITO to accept the valuation of shares of Birla Bros.(P) Ltd. as disclosed by the assessee.