https://www.taxtmi.com/caselaws?id=55289 For wealth-tax valuation of mortgaged immovable property, the asset is valued as encumbered property, so its open market value must be reduced by the mortgage debt to reflect the diminished rights actually owned by the assessee. Rule 2(a) of Paragraph B of Part I of Schedule I governs deductions in computing net wealth and does not prevent the mortgage encumbrance from being considered at the valuation stage under section 7. The wealth-tax measure is therefore the market value of the mortgaged asset less the encumbrance, and the mortgage debt was correctly deducted in valuing the bungalow. en-us Fri, 19 Feb 1982 00:00:00 +0530 Thu, 25 Nov 2010 11:56:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=55289 For wealth-tax valuation of mortgaged immovable property, the asset is valued as encumbered property, so its open market value must be reduced by the mortgage debt to reflect the diminished rights actually owned by the assessee. Rule 2(a) of Paragraph B of Part I of Schedule I governs deductions in computing net wealth and does not prevent the mortgage encumbrance from being considered at the valuation stage under section 7. The wealth-tax measure is therefore the market value of the mortgaged asset less the encumbrance, and the mortgage debt was correctly deducted in valuing the bungalow. Case-Laws Wealth-tax Fri, 19 Feb 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=55289