Actual rent basis for property valuation prevails where no rent increase justifies rejection of enhanced estimate.

The valuation of an assessee's 1/6th share in immovable property was assessed on the basis of actual rent realised, not notional rent, for capitalising annual income. Where the rent received during the relevant year did not increase, there was no factual basis for enhancing the earlier valuation by 10 per cent. The assessee's valuation working also did not justify any upward revision. The property share value was therefore retained at Rs. 4,40,495 and the proposed enhancement was rejected.

---

---

Issues: Whether the value of the assessee's 1/6th share in the property was required to be increased by 10 per cent over the earlier year's valuation, or whether the same value should be retained on the basis of actual rent realised.

Analysis: The earlier Tribunal order had treated the actual rent, and not any notional rent, as the proper basis for capitalising the annual income of the property. On that footing, and in the absence of any increase in the rent received during the relevant year, there was no justification for adopting a higher valuation than the one accepted for the earlier year. The assessee's valuation working also showed no basis for enhancement merely by adding 10 per cent.

Conclusion: The value of the assessee's 1/6th share was to be retained at Rs. 4,40,495 and the proposed enhancement was rejected.

---