1982 (8) TMI 45

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..... This has been found to be an undervaluation by the Collector and Superintendent of Stamps, Bombay, who has sent to the Prothonotary and Senior Master a valuation made by the Assistant Director of Town Planning, Bombay City Survey and Land Records, in the sum of Rs. 3,70,787. This valuation has been made on the land-plus-building method. The petitioner having filed his objection, an enquiry has to be held under the provisions of s. 28(5) of the Bombay Court Fees Act, 1959. Ordinarily, the matter would forthwith have been referred to the Prothonotary and Senior Master for holding the enquiry. Mr. Seervai, learned counsel for the petitioner, has, however, contended that a question of principle should first be decided by the court, namely,....

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....ing amounts, namely : (a) The amount arrived at by multiplying the net maintainable rent in respect of the part of the house used for residential purposes by the fraction 100/8; (b) The amount arrived at by multiplying the net maintainable rent in respect of the remaining part of the house, if I any, by the fraction 100/9... " Clause (2) defines: " Gross maintainable rent ", in relation to a house, means- " the sum for which the house might reasonably be expected to let from year to year.." "`House' includes an independent residential unit." "`Net maintainable rent', in relation to a house, means the amount Of the gross maintainable rent as reduced as therein stated in respect of local tax, repairs, rent collection, insura....

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....ethod of valuation for the purposes of estate duty also. Mr. Shah, learned counsel for the Superintendent of Stamps, submitted, however, that r. IBB laid down an artificial method for the assessment of market value; since there was no such rule under the E.D. Act, the actual value had to be computed. The W.T. Act requires an assessment of the price, which the property would fetch if sold in the open market. The rule is made for the purpose of the Act. The rule provides how the valuation of a house is to be arrived at. It is not possible to hold that the Rules does not provide for the valuation on the basis of what the house would fetch if sold in the open market. Mr. Shah submitted that since the property yielded no rent and since it ....