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TMI Blog1983 (3) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... r factors, he valued all the properties at Rs. 16,29,061. The assessee went in appeal to the AAC. He applied different methods of valuation depending upon the location and the extent of the properties. In respect of houses which had considerable vacant land around them, he determined the value of the house with the appurtenant land and of the excess land separately. He also adopted a different basis in respect of properties situate in Netaji Subhas Chandra Bose Road which he considered very valuable. As regards the properties situate at Harrington Road, the AAC felt that the adoption of the rental method would be highly unrealistic. Therefore, in valuing the properties, he adopted the split up yield method as adopted by the WTO, but reduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show that the rent paid would cover not only the building but also the surrounding lands which are extensive and, therefore, the AAC has rightly adopted the valuation of the surplus land and of the building on the basis of applying 20 times the net yield. Thus, the Tribunal felt that there is no material produced by the assessee to show that the entire lands surrounding the building also came under the purview of the Rent Control Act and it adopted the value of the superstructure at Rs. 30,000 but with regard to the surrounding land, it fixed Rs. 9,000 per ground and after giving the benefit for parcelling out for roads, etc., at 1/5th of the same value, fixed the value of the land at Rs. 75,000. Thus, the Tribunal fixed the aggregate valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Tribunal in respect of the above items of properties, the following question of law has been referred to this court at the instance of the assessee: " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in the method of valuation adopted by it in valuing door Nos. 56, 61, 62 and 63, Harrington Road, Madras, and door Nos. 178 and 179, Netaji Subhas Chandra Bose Road, Madras? " It is seen from the question referred that this reference covers only door Nos. 56, 61, 62 and 63, Harrington Road, Madras, and door Nos. 178 and 179, Netaji Subhas Chandra Bose Road, Madras, and that we are not concerned with the valuation of the other items of properties. After a due consideration of the mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see any error in adopting such a basis in respect of the properties where there are buildings surrounded by large extent of vacant site which cannot be taken to have been let out along with the building for its convenient enjoyment. We do not, therefore, see any justification for interfering with the method of valuation adopted by the Tribunal in respect of the properties in Harrington Road. The learned counsel for the assessee refers to the decision in Gouthamchand Galada v. CWT [1972] 86 ITR 292 (Mad), in support of his stand that the method of valuing a building with the appurtenant land and the other vacant land separately cannot be legally sustained. But we do not find any support from the said decision for the assessee's said conte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase the entire properties including the vacant site and, therefore, the rent paid by them should be taken to be only for the building and the appurtenant land. So long as there is no evidence that the lease was in respect of the entire property including the vacant site, the Tribunal was justified in adopting the method of valuing the building and the vacant site separately. In CWT v. Ramachandran [1966] 60 ITR 103, the Mysore High Court, and in CED v. Radha Devi Jalan [1968] 67 ITR 761, the Calcutta High Court, had held that in the case of buildings with compounds in a city which are in the possession of tenants and the tenants cannot either be evicted or the rent payable by them enhanced, except in accordance with the provisions of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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