https://www.taxtmi.com/caselaws?id=39935 For municipal rating of factory buildings on a capital-value basis, the capital value must be determined by a proper valuation method, not by the book figures in a company balance sheet. Accounting entries made under the Companies Act serve financial reporting purposes and do not by themselves establish taxable capital value. The contractor's method, under which construction cost is estimated and appropriate deductions are made for age, obsolescence and related factors, was identified as the correct basis for valuation. The court below had adopted an erroneous approach, so the assessment was set aside and the matter remitted for fresh determination on the proper legal test. en-us Wed, 20 Mar 1968 00:00:00 +0530 Mon, 11 Aug 2014 22:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39935 For municipal rating of factory buildings on a capital-value basis, the capital value must be determined by a proper valuation method, not by the book figures in a company balance sheet. Accounting entries made under the Companies Act serve financial reporting purposes and do not by themselves establish taxable capital value. The contractor's method, under which construction cost is estimated and appropriate deductions are made for age, obsolescence and related factors, was identified as the correct basis for valuation. The court below had adopted an erroneous approach, so the assessment was set aside and the matter remitted for fresh determination on the proper legal test. Case-Laws Income Tax Wed, 20 Mar 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39935