Section 6. Unquoted equity shares in investment companies

6. Unquoted equity shares in investment companies. (1) Subject to rule 7, the value of an unquoted equity share in an investment company shall be determined in the manner specified in sub-rule (2). (2) The value of all the liabilities as shown in the balance sheet of such company shall be deducted from the value of all its assets shown in that balance sheet ; the net amount so arrived at shall be divided by the total paid-up equity share capital of the company as shown in the balance sheet, and the result multiplied by the paid-up value of each equity share shall be the value of the unquoted equity share in that investment company for the purposes of this Act. (3) For the purposes of sub-rule (2), the value of an asset disclosed in the balance sheet of the company shall be taken to be its value determined in accordance with the rules as applicable to that particular asset and, in the absence of any such rule, the value of such asset shall be its value as determined under rule 20 of Schedule III to the Wealth-tax Act. (4) For the purposes of this rule,— (a) "balance sheet" has the same meaning as in rule 5; (b) the amounts referred to in sub-rule (3) of rule 5 shall not be treated as assets or liabilities. (5) For the purpose of facilitating the valuation of unquoted equity shares under this rule and rule 7, the company concerned shall have such valuation made by its auditors appointed under section 224 of the Companies Act, 1956 (1 of 1956), and a certificate of the auditors relating to such valuation in the prescribed form shall be furnished to the Assessing Officer and the shareholders of the company; and the valuation made by the auditors shall be taken into account in the assessment of the shareholders of the company. 4. Subs. by Act 53 of 1962, s. 17, for "sub-section (1) of section 46 of the Income-tax Act" (w.e.f. 1-4-1963). 5. Added by s. 17, ibid. (w.e.f. 1-4-1963). 6. Ins. by s. 17, ibid , (w.e.f. 1-4-1963). 7. Clause (h) omitted by Act 4 of 1988, s. 176 (w.e.f. 1-4-1989). 8. Subs. by s. 161, ibid ., for "Appellate Assistant Commissioner" (w.e.f. 1-4-1988). 9. Ins. by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10-7-1978). 10. Subs. by Act 4 of 1988, s. 176, for clauses (b), (c) and (d) (w.e.f. 1-4-1989). 11. Subs. by Act 21 of 1998, s. 76, for "Deputy Commissioner" (w.e.f. 1-10-1998). 12. Subs. by Act 3 of 1989, s. 88, for clause (c) (w.e.f. 1-4-1989). 13. Subs. by Act 21 of 1998, s. 76, for "Deputy Director" (w.e.f. 1-10-1998). Provided that no appeal shall lie under clause (b) of this sub-section against any order referred to in clause (f) of sub-section (1) unless the tax has been paid before the appeal is filed.] 1[(1B) Notwithstanding anything contained in sub-section (1), the Board or the Director General or the Chief Commissioner or the Commissioner, if so authorised by the Board, may, by order in writing, transfer any appeal which is pending before a Deputy Commissioner (Appeals) and any matter arising out of or connected with such appeal and which is so pending, to the Commissioner (Appeals), if the Board or, as the case may be, the Director General, the Chief Commissioner or the Commissioner (at the request of the appellant or otherwise) is satisfied that it is necessary or expedient so to do having regard to the nature of the case, the complexities involved and other relevant considerations and the Commissioner (Appeals) may proceed with such appeal or matter from the stage at which it was before it was so transferred : Provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceeding or any part thereof be reopened or that he be reheard.]] (2) An appeal shall be presented within thirty days of the receipt of the notice of demand relating to the assessment or penalty objected to, or the date on which any order objected to, is communicated to him, but the[2] [Deputy Commissioner (Appeals)][3] [or, as the case may be, the Commissioner (Appeals)] may admit an appeal after the expiration of the period aforesaid if he is satisfied that the appellant had sufficient cause for not presenting the appeal within that period. (3) The[2] [Deputy Commissioner (Appeals)][3] [or, as the case may be, the Commissioner (Appeals)] shall fix a day and place for the hearing of the appeal and may from time to time adjourn the hearing. (4) The[2] [Deputy Commissioner (Appeals)][3] [or, as the case may be, the Commissioner (Appeals)] may,— (a) at the hearing of an appeal allow an appellant to go into any ground of appeal not specified in the grounds of appeal; (b) before disposing of an appeal, make such further inquiry as he thinks fit or cause further enquiry to be made by the[4] [Assessing Officer]. (5) In disposing of an appeal, the[2] [Deputy Commissioner (Appeals)][3] [or, as the case may be, the Commissioner (Appeals)] may pass such order as he thinks fit which may include an order enhancing the amount of gift-tax determined or penalty imposed: Provided that no order enhancing the amount of gift-tax determined or penalty imposed shall be made unless the person affected thereby has been given a reasonable opportunity of showing cause against such enhancement. 5[(5A) In disposing of an appeal, the 2[Deputy Commissioner (Appeals)] 3[or, as the case may be, the Commissioner (Appeals)] may consider and decide any matter arising out of the proceedings in which the order appealed against was passed, notwithstanding that such matter was not raised before the[2] [Deputy Commissioner (Appeals)][3] [or, as the case may be, the Commissioner (Appeals)] by the appellant. (5B) The order of the[2] [Deputy Commissioner (Appeals)][3] [or, as the case may be, the Commissioner (Appeals)] disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for the decision.] 1. Subs. by Act 4 of 1988, s. 176, for "sub-sections (1B) and (1C)" (w.e.f. 1-4-1989). 2. Subs. by s. 161, ibid ., for "Appellate Assistant Commissioner" (w.e.f. 1-4-1988). 3. Ins. by Act 29 of 1977, s. 39 and Fifth Schedule (w.e.f. 10-7-1978). 4. Subs. by Act 4 of 1988, s. 161, for "Gift-tax Officer" (w.e.f. 1-4-1988). 5. Ins. by Act 53 of 1962, s. 17 (w.e.f. 1-4-1963). (6) A copy of every order passed by the[1] [Deputy Commissioner (Appeals)][2] [or, as the case may be, the Commissioner (Appeals)] under this section shall be forwarded to the appellant and the[3] [Chief Commissioner or Commissioner.] 22A. [ Application by the assessee in certain cases. ] — Omitted by the Direct Tax Laws (Amendment) Act, 1989 (3 of 1989), s. 95 (w.e.f. 1-4-1989). Which was inserted by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), s. 177 (w.e.f. 1-4-1989 ).