GOVINDARAJULU R V Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Bangalore Bench, has stated a case and referred under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the following questions for the opinion of this court :

(2.) THE assessee is an individual. For the assessment year 1963-64 he filed a return on December 9, 1963. He died on January 7, 1965, and on March 18, 1968, his legal representative filed a revised return wherein he claimed a capital loss of Rs. 89,968.

(3.) THE assessee being aggrieved by the assessment order made by the Income-tax Officer, took up the matter in appeal before the Appellate Assistant Commissioner who was of the opinion that the proper method of valuation in a case like the present one where the premises were let out to tenants, would be the rental method of valuation. He came to the conclusion that it will be reasonable to capitalise the net rent at 9.5 times and on that basis worked out the market value of the properties as on January 1, 1954, at Rs. 1,85,250 and the capital gains at Rs. 1,05,251.