Capitalisation multiple for wealth-tax valuation reduced after property-under-construction facts showed the original rate was excessive.

For wealth-tax valuation of a property under construction, with the completed portion let out, the capitalisation multiple adopted by the lower authority was found to be excessive on the facts and material on record. The multiple of 16.178 was therefore reduced to 12.5, and the valuation relief was to be worked out accordingly in favour of the assessee. Grounds not pressed were not examined.

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Issues: (i) Whether the multiple of 16.178 adopted for capitalisation in valuing the assessee's property for wealth-tax purposes was excessive and required reduction.

Issue (i): Whether the multiple of 16.178 adopted for capitalisation in valuing the assessee's property for wealth-tax purposes was excessive and required reduction.

Analysis: The grounds not pressed were not examined. On the valuation issue, the property was still under construction during the relevant year and the completed portion had been let out. Having regard to the facts and the material on record, the capitalisation multiple adopted by the lower authority was found to be on the higher side and a lower multiple was considered reasonable.

Conclusion: The multiple was reduced to 12 1/2 times and the relief was to be worked out accordingly, in favour of the assessee.

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