TaxTMI 
TaxTMI 
1991 (12) TMI 48
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....,151 on account of reversionary value of land made to the value of the property known as 'Wenger's Building'?" The facts giving rise to the above reference being made to this court are that Wenger's Building was purchased by the firm, Wenger and Company, from Dayal Singh Trust Society and Shri Mool Chand Kharaiti Ram Trust, vide sale deeds dated March 9, 1962, and September 28, 1963, for Rs. 3,90,000 and Rs. 1,50,000, respectively. The total consideration thus comes to Rs. 5,40,000. The building was constructed some time during the year 1930 on a plot of land measuring 1051 sq. yds. having two storeys. Before the purchase, M/s. Wenger and Co. was occupying a part of the said building as a tenant and in fact had been running its business ....
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.... Wealth-tax Officer to recompute the market value of the property in question. He also directed deletion of the amount added on account of reversionary value of the property. The Revenue appealed to the Tribunal saying that the inclusion of the reversionary value of the land was fully justified. The Tribunal held against the Revenue which has led to the present reference being made. It is not disputed that the property in question is covered by the provisions of the Delhi Rent Control Act. It is also not disputed that there are tenants in the property, though a part thereof is in the occupation of the assessees. These factors have an important bearing on the value of the property. This court has recognised the effect of such impediments ....
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....reversionary value of land for purposes of valuation of a property has been considered. First he cites a judgment of the Calcutta High Court in CIT v. Ashima Sinha [1979] 116 ITR 26. It has been held in the said judgment that if a statutory control is imposed on a commodity restricting the price or transfer or distribution of the same, then the commodity ceases to be a commercial commodity as understood in common parlance and becomes a controlled commodity and its effective value is its controlled value and not an imaginary commercial value. If the State chooses to impose statutory control in respect of terms and conditions of tenancies in properties and such control is statutorily enforced, then during the subsistence of such control, such....
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....987] 168 ITR 485 and CWT v. Rant Narain Garg [1988] 68 CTR 75. Since the later decision merely follows the earlier one, we would prefer to make a reference to the earlier decision only. The assessee in this case owned a share in some immovable properties. The properties were fully developed and tenanted and the tenancies were regulated by the Rent Control Act. The Valuation Officer determined the value of the properties by adopting the "rent capitalisation method" and added certain amounts to it on account of the reversionary value of the land. The Tribunal held that the reversionary value of land should not be included While computing the value based on the "rent capitalisation method". It was held that the valuation of assets had to be ma....