TMI Blog1993 (10) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... aveli situated in Shahpura Mohalla, Beawar, on rent capitalisation method? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in upholding the multiplier of 12.50 applied by the Appellate Assistant Commissioner while computing the value of the let out portion of Rathi House, Jaipur?" The brief facts of the case are that Seth Gokuldas Pradeep Kumar Rathi has a half share in the house property, namely, Haveli, situated in Shahpura Mohalla. The value of the share in the property shown by the assessee in the various assessment years 1970-71 to 1973-74 was increased as under : ------------------------------------------------------------------------------------------------------------------------------ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llate Assistant Commissioner, the value of the rented portion was taken at a figure of Rs. 44,175 and that of the self-occupied portion at a figure of Rs. 1,80,825 in respect of the assessment year 1970-71. The total value thus taken out was Rs. 1,75,000. The Appellate Assistant Commissioner adopted the rent capitalisation method for determining the valuation of the property which was rented out taking into consideration the rent realised by the assessee and in respect of the self-occupied property, the land-cum-building method was followed which was adopted by the Valuation Officer as well as the Wealth-tax Officer. The valuation for the assessment years 1971-72, 1972-73 and 1973-74 was taken at a figure of Rs. 2,00,000, Rs. 1,89,000 and R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edged securities in the year preceding the valuation date has to be taken into consideration and since it was not controverted by the Departmental Representative that the rate of interest on fixed deposits was less than eight per cent. during the accounting period relevant to the valuation date for the assessment year 1970-71, the Tribunal upheld the multiplier of 12.50 which was applied by the Appellate Assistant Commissioner. We have considered the matter. In accordance with the provisions of section 7(1) of the Wealth-tax Act, the value of any asset other than cash, for the purpose of the Act has to be estimated by the Wealth-tax Officer, as the price it would fetch, if sold in the open market on the valuation date. Besides the princip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecurities and even in the share market in the shape of blue chips command a much greater return. The more secure the capital and regular the return, the lesser the rate of interest. The more secured kind of investment is Government Securities or deposits with scheduled banks or Unit Trust or National Savings Certificates. The rate of interest on Government of India bonds for a period 30 years in 1972 yielded 5.75 per annum. As per the Government of Karnataka publication called "Finance Accounts of 1972-73", the rate of interest on the Mysore State Development Loans, issued in the years 1967, 1968, 1969, 1970, 1971 and 1972 was uniformly 5 3/4. The rate of interest on fixed deposits with the State Bank of India for a period ranging from 3 ye ..... X X X X Extracts X X X X X X X X Extracts X X X X
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