Rental method valuation: age of property is not a valid basis for a higher multiplier, and a 12x factor was upheld.

Under the rental method for valuing immovable property, the multiplier must reflect a reasonable capitalisation factor, and the age of the property is not a relevant basis for increasing it. The Tribunal held that a multiplier of 12 was appropriate for the properties in question and rejected a higher multiplier of 14 for the newer property. The multiplier for both properties was reduced to 12, and the assessee succeeded to that extent.

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Issues: Whether the multiplier applied for valuation of the two immovable properties under the rental method was excessive, and whether the age of the property could justify a higher multiplier.

Analysis: The valuation was to be made by adopting the rental method with an appropriate multiplying factor. The Tribunal found that a multiplier of 12 was reasonable for the property at 14, Phears Lane, and there was no justification for applying a higher multiplier of 14 to the property at 16, Phears Lane merely because it was comparatively newer. The age of the property was held to be an irrelevant consideration for fixing the multiplier.

Conclusion: The multiplier for both properties was reduced to 12, and the assessee succeeded to that extent.

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