Gross rent against the actual gross yearly rental.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ypothetical figure of Rs.35,412/- per annum as gross rent against the actual gross yearly rental of Rs.84,000 and after deducting 30% as outgoings he capitalised a hypothetical net yearly rental of Rs.24,788 as against the actual net rental of Rs.65,744. It seems that the valuer argued that the existing high rental was on account of temporary inflation of rents and while working out the market val....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... But, in the absence of special factors definitely implying some future changes in rental value, the assumption is a reasonable one, for the possibility of changes either upwards or downwards is reflected in the rate per cent which an investment is expected to yield" --page 21. Evidently, therefore, by and large, the actual rental should be the criterion for purposes of capitalisation so long a....