TaxTMI 
TaxTMI 
1969 (12) TMI 9
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....t under the Wealth-tax Act, 1957, the Tribunal is justified, in law in deeming the lessor as the owner of the superstructure and the other rights even before the expiry of the lease ? (2) On the facts and circumstances of the assessee's case, in the case of valuation of the property let out to the Indian Bank, whether the valuation adopted by the Appellate Tribunal is justified in law ? (3) Whether, on the facts and in the circumstances of the case, the assessee was rightly assessed in the status of an 'individual' for the assessment year 1963-64 ? " Question No. 1 does not disclose the real issues between the parties and therefore we recast question No. 1 as follows : " On the facts and in the circumstances of the case, whether the ba....
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.... the lease. The lease deed gave an option to the lessee to renew the lease after the expiry of 30 years for a further period of 10 years. Under the terms of the lease, the lessee agreed to surrender the building constructed by him on the site to the lessor without claiming any compensation. After the execution of the lease, the lessee, Jayanthilal Thakoor, constructed a theatre on the land which is now called as the " Alankar Theatre ". The Wealth-tax Officer and the appellate authorities valued the building of the " Alankar Theatre " as on the date of the valuation, viz., March 31, 1963, at Rs. 4,75,000. Since the assessee and his divided brothers would get the building only on the expiry of the lease, the Tribunal valued the said right at....
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.... 10 years. The value of the building, 34 years after the valuation date when the lessor would be entitled to its possession, has to be determined by allowing depreciation for the building. For a first class building the income-tax authorities allow depreciation at the rate of 2 1/2 per cent. per annum. The written down value of the building works out at Rs. 2,00,271 as on April 1, 1997. If the value of the building on April 1, 1997, when the assessee becomes entitled to recover possession of the building is Rs. 2,00,271, then the value of that right on March 31, 1963, would be Rs. 38,121 applying the Parks Table and taking the interest yield at 5 per cent. The authorities under the Act, having valued the land at Rs. 1,10,318, they were not....
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....ring a period of 10 years prior to the date of the valuation and also for the future period of 5 years from the said date was and is Rs. 1,000 per month. Under section 7, which provides for the valuation of the assets, the Wealth-tax Officer has to compute the value of the property on the basis of the value it would fetch if sold in the open market on the valuation date. What the Wealth-tax Officer is required to determine is the market value of the property on the valuation date. The market value of immovable property has to be determined on the basis of what value a willing seller would reasonably expect from a willing purchaser. In Commissioner of Wealth-tax v. V. C. Ramachandran this court was concerned with the valuation of house prope....
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....In the instant case, under the terms of the lease, the assessee has no right to claim enhancement of rent or to seek eviction of the lessee before the expiry of the lease. The rental value of the building is undoubtedly one of the factors to de taken into consideration in valuing the market value. For the purpose of determination of the market value it is open to the Wealth-tax Officer to take into consideration the value of buildings in similar circumstances if there are sale transactions. No such material has been relied on by the Wealth-tax Officer or the appellate authorities. If there were any sale transactions of house property leabed to tenants that would have given the basis for valuing the market value of the property ; but in the ....