https://www.taxtmi.com/caselaws?id=17657 For wealth-tax valuation, an assessee's interest in mortgaged property is assessed at its open-market value, and where the sale proceeds are fully absorbed by the mortgage debt, the equity of redemption may have no realisable value and be taken at nil. The same principle applies to a book debt: under section 7 of the Wealth-tax Act, 1957, read with Rule 20 of Schedule III, the relevant test is market value, not face value. If the debtor's financial position shows that no willing buyer would pay anything for the chose in action, its value may also be nil. en-us Thu, 19 Dec 1996 00:00:00 +0530 Thu, 24 Sep 2009 10:20:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17657 For wealth-tax valuation, an assessee's interest in mortgaged property is assessed at its open-market value, and where the sale proceeds are fully absorbed by the mortgage debt, the equity of redemption may have no realisable value and be taken at nil. The same principle applies to a book debt: under section 7 of the Wealth-tax Act, 1957, read with Rule 20 of Schedule III, the relevant test is market value, not face value. If the debtor's financial position shows that no willing buyer would pay anything for the chose in action, its value may also be nil. Case-Laws Wealth-tax Thu, 19 Dec 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17657