https://www.taxtmi.com/caselaws?id=64613 For wealth-tax valuation of rent-controlled leasehold property, the fair market value is determined by capitalising net maintainable rent under the yield method rather than by separate land-and-building valuation. A lease covenant requiring the lessee to share 50% of any unearned increase in value on transfer must be reflected as a deduction in the valuation because it reduces the open-market price. Where rent received from foreign tenants includes an abnormal or fancy element, the rent base should be adjusted downward before capitalisation, and valuation recomputed accordingly. The stated approach treats lease restrictions and atypical rent as relevant valuation factors under section 7(1) of the Wealth-tax Act, 1957. en-us Fri, 28 Feb 1975 00:00:00 +0530 Wed, 09 Feb 2011 10:14:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64613 For wealth-tax valuation of rent-controlled leasehold property, the fair market value is determined by capitalising net maintainable rent under the yield method rather than by separate land-and-building valuation. A lease covenant requiring the lessee to share 50% of any unearned increase in value on transfer must be reflected as a deduction in the valuation because it reduces the open-market price. Where rent received from foreign tenants includes an abnormal or fancy element, the rent base should be adjusted downward before capitalisation, and valuation recomputed accordingly. The stated approach treats lease restrictions and atypical rent as relevant valuation factors under section 7(1) of the Wealth-tax Act, 1957. Case-Laws Wealth-tax Fri, 28 Feb 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64613