TMI Blog1999 (4) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... o-owners of four properties. The first property is a residential property. The assessee disclosed the value of this property at Rs. 80,000. The Valuation Officer took the value of the building by capitalising the rent of Rs. 6,700 at 7.722 times and added reversionary value of the land to arrive at the value of Rs. 2,04,000. The second property is "Band Line property". The assessee showed the valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Valuation Officer thus reducing the value of the properties. The Commissioner directed that the value of Alexandra House be accepted as Rs. 80,000, the value of the Cash Bazar property as Rs. 3,38,300 and the value of the property, Liberty Theatre as Rs. 3,79,700. With reference to the Band Line property, he directed the Wealth-tax Officer to recompute the value of the land which was separat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and in the circumstances of the case, the Appellate Tribunal was right in holding that no addition on account of 'reversionary value' of the lands was warranted ?" Learned counsel for the Revenue submitted that the Appellate Assistant Commissioner was in error in deleting the reversionary value of the land and the superstructures were not really valuable and the land is more valuable and the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner has followed the decision of the Calcutta High Court in CIT v. Anup Kumar Kapoor [1980] 125 ITR 684 and has taken the view that there is no justification in adding the reversionary value of the land as the value of the property has been determined by adopting the rental method. The Tribunal confirmed the order of the Appellate Assistant Commissioner in respect of the valuation of other proper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eversionary value of the land." We concur with the view taken by the Calcutta High Court and we are of the view that the yield or rental method of valuation is proper and the value cannot be enhanced by adding the reversionary value of the land. The Wealth-tax Officer was not justified in adding the reversionary value of the land. Hence, we find no error in the order passed by the Tribunal. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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