Wealth-tax valuation of let-out property: repairs cess could not be deducted from assessed net income for multiplier valuation.

For wealth-tax valuation of let-out immovable properties by applying a multiplier to net income, the assessee could not further reduce the income by repairs cess paid under the Bombay Buildings Repairs and Reconstruction Board Act, 1969. The Court noted that the material before it did not establish the deduction claim, and the basis on which the income-tax net income had been computed was not shown. In those circumstances, there was no error in the Tribunal adopting the net income as assessed in income-tax proceedings for valuation purposes. The reference was answered against the assessee and in favour of the Revenue.

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Issues: Whether, for valuing let-out properties in wealth-tax proceedings, the assessee could reduce the net income taken from income-tax assessment by the amount paid as repairs cess under the Bombay Buildings Repairs and Reconstruction Board Act, 1969.

Analysis: The question referred arose under section 27(1) of the Wealth-tax Act, 1957, in the context of valuing immovable properties by applying a multiplier to the net income from those properties. The assessee claimed that the amount paid as repairs cess was deductible while determining the annual letting value. The assessment records and prior appellate material did not show that this claim had been established, and the manner in which the income-tax figure of net income had been computed was also not before the Court. In those circumstances, the Court held that there was nothing wrong in the Tribunal adopting the net income as assessed in income-tax proceedings for applying the multiplier.

Conclusion: The assessee was not entitled to further reduce the net income by the repairs cess for the purpose of valuation, and the answer to the reference was against the assessee and in favour of the Revenue.

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