Valuation of irrecoverable rent in net wealth must reflect market value of the receivable, not full face value.

Net wealth valuation required the right to receive rent to be valued at its market value on the valuation date, not automatically at the full face amount, where the rent had become irrecoverable due to tenant trouble and eviction. The write-off was treated as a valuation issue for the receivable itself, not as a bad debt deduction claim. A representative's apparent consent did not justify assessment at the full amount if the legal valuation principle pointed otherwise. The addition of the entire amount was not sustained, and the matter was remitted for fresh determination of the market value and consequential reassessment.

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Issues: Whether the irrecoverable rent from the assessee's property was to be included in net wealth at its full face value or only at the market value of the right to receive such rent, having regard to its alleged non-recoverability.

Analysis: The assessment of net wealth required valuation of the right to receive rent from the property on the valuation date. Since the rent had been written off as irrecoverable in the circumstances arising from tenant trouble and eviction, the correct approach was to determine the market value of that right, not to reject the claim as if it were a claim for deduction of bad debt. The apparent consent by the assessee's representative did not justify inclusion at the full amount if the legal position required a different valuation.

Conclusion: The addition of the entire amount could not be sustained, and the matter was sent back for fresh determination of the market value of the right to receive rent and consequential reassessment.

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