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TMI Blog1985 (11) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... of land with a building at Poonamallee High Road, Madras. 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding was determined at Rs. 8,00,000. This was accepted by the Tribunal. A reference application under section 27(1) having been dismissed, the present application has been filed under section 27(3) of the Wealth-tax Act, 1957, praying for a direction to the Tribunal to refer the above said question. Two points are raised by the learned counsel for the Revenue in support of his contention that the proposed question of law has to be directed to be referred. Firstly, he contended that the potential rental value should have been taken into account and not the rental actually paid. The Tribunal had found as a fact that Rs. 5,000 received by the assessee from the tenant is the real rent as on March 31, 1975, which is the relevant date for purpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ased rent. It may be a different matter if the building is valued not on the basis of multiple of the annual rental value but on a different method in which case the future prospects of being put to a better use or to other purposes may have to be taken into account for valuing the building, as in the case of an agricultural land, with potential value as a house site. However, when the determination is with reference to the annual rental value, the rent fetched or reasonably expected as on the date of valuation is the only relevant matter and not the future rent that it may fetch. We are, therefore, unable to agree with the learned counsel that in fixing the annual rental value the Tribunal or the Appellate Assistant Commissioner has in any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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