(1.) THE following question is sought to be referred in this case "Whether the method of valuation applied by the Appellate Tribunal for determining the fair market value of the property at 927, Poonamallee High Road, Madras, at Rs. 8, 00, 000 for the wealth-tax assessment for the tax year 1975-.76 in the circumstances of the case is valid in law and in accordance with principles of valuation of properties ?" *THE assessee, a practising doctor, owned 10 grounds of land with a building at Poonamallee High Road, Madras.
(2.) THIS asset was used by the assessee for running a private hospital. For the assessment year 1975-.76 the assessee filed return under the provisions of the Wealth-tax Act, 1957, disclosing a net wealth of Rs. 2, 89, 300. The assessee, while valuing the asset, adopted the value of the land at Rs. 2, 00, 700 representing the cost and the depreciated value of the building at Rs. 4, 75, 901 as shown in the accounts and book value of furniture, fittings and medical equipment. The property had been leased to a private limited company formed by the assessee on a monthly rent of Rs. 9, 000 which consisted of Rs. 4, 000 for the building and Rs. 5, 000 for the furniture, fixtures and equipment. As and from April 1, 1974, the lease agreement came to be revised under which a lease rent of Rs. 7, 000 per month consisting of Rs. 5, 000 for the land and building and Rs. 2, 000 for other assets was fixed.