Rental capitalisation as fair market valuation basis for let properties, with appellate interference limited absent a contrary finding.

For rented property valued in acquisition proceedings, fair market value may properly be determined on the rental capitalisation basis rather than the land-and-building method. The Court treated rental capitalisation as a recognised and approved valuation approach for property in tenant occupation, supported by legislative recognition and judicial precedent. On the facts, the rental-based valuation remained below the apparent consideration, and the Tribunal had not recorded any firm contrary finding on fair market value from the material before it. The decision indicates that such valuation will not be displaced in appeal without a clear contrary finding showing a higher market value.

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Issues: Whether, in determining the fair market value of a rented property for acquisition proceedings, the rental capitalization method should be preferred over the land-and-building method, and whether the Tribunal's conclusion on valuation could be interfered with in appeal.

Analysis: The property was let out at the time of sale, and the Court held that the rental method is a well-recognised and approved basis for valuing such properties. Support was drawn from legislative recognition under the Wealth-tax Rules and from judicial precedent approving capitalization of rental return for buildings in occupation of tenants. On the facts, the rental basis yielded a value below the apparent consideration, and the Tribunal had not recorded a firm contrary finding of fair market value on the material before it.

Conclusion: The rental capitalization method was the proper basis for valuation in the circumstances, and the appeal failed.

Ratio Decidendi: For rented property, fair market value may properly be determined on the rental capitalization basis, and such valuation will not be displaced in appeal absent a firm contrary finding showing the property to be worth more than the apparent consideration.

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