Urban land ceiling restrictions require valuation by statutory compensation, not open market rate, where transfer is constrained.

Immovable property subject to urban land ceiling restrictions must be valued by reference to the compensation payable under the statutory ceiling framework, because transfer restrictions materially reduce realisable value and make open market valuation inappropriate. Where the owner cannot freely deal with the land, the market rate does not reflect the property's actual value for tax or valuation purposes. The legal question was answered in favour of the assessee and against the Revenue.

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Issues: Whether immovable property subject to urban land ceiling laws is to be valued on the basis of the compensation payable under the Ceiling Act rather than at market rate.

Analysis: The property was subject to restrictions under the urban land ceiling regime, and such restriction materially affected its realisable value. Where the owner cannot freely transfer the land, its value cannot exceed the amount the State would pay under the statutory ceiling framework. On that principle, valuation by market rate was held to be inappropriate.

Conclusion: The property had to be valued with reference to the compensation payable under the Urban Land Ceiling Act, and not at the market rate. The question of law was answered in favour of the assessee and against the Revenue.

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