GEORGE OAKES LTD Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THREE questions arise in this batch of references and appeals. The first two arise for the asst. yrs. 1984-85, 1985-86, 1987-88, 1988-89 and the third for the asst. yrs. 1988-89, 1990-91 and 1991- 92. The three questions are :

(2.) THE undisputed facts are that the assessee is the owner of the building and land situated at No. 17, Greams Road, Madras. The building has been let out to a sister concern from which the assessee has been receiving rent. The letting commenced some time in the year 1972 and during these years the tenant concerned, viz., M/s TAFE, was in occupation of the property.

(3.) THOUGH the AO declined to carry out the valuation by the method proposed by the assessee, the CIT, on appeal, held that the vacant land which was quite substantial was required to be valued at the rate at which the compensation is provided for lands in terms of the Urban Land Ceiling Act. The property at No. 17, Greams Road, has an extent of 31 grounds and 1,820 sq. mt. The building with an area of about 1,394 sq. mt. is situated in an area of 8.75 grounds. In respect of that building and the ground on which it rests, the CIT upheld the method adopted by the AO, viz., "land and building method", for determining the market value. The Tribunal has affirmed the order of the CIT.