S. VIJI vs COMMISSIONER OF GIFT TAX

The Supreme Court addressed the valuation of shares under the Gift Tax Act, 1958, specifically under Section 6, determining that the balance sheet figures as of 31.3.1973 should be used for calculating the break-up value of shares gifted on 28.3.1973. The Court held that the later balance sheet provides a more accurate reflection of the company's asset value, rejecting the assessee's argument for using the earlier balance sheet figures from 31.3.1972. This decision emphasizes the importance of using the most relevant financial data available at the time of the gift.