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Section 7 of the wealth-tax act, 1957-Valuation of assets-Assesses owned certain buildings having extensive land around them but placed no material to show that rent paid would cover not only building but also surrounding lands-Whether method of valuing buildings and appurtenant land on rental basis and remaining land separately at actual market value was justified-Held, yes Facts The assessee owned certain buildings having large extent of vacant site around them. The rental agreements in relation to the buildings were not shown to include the extensive vacant land surrounding the buildings. The assessee claimed that the method of valuing the buildings and site separately, as adopted by the AAC, was improper. The Tribunal, however, upheld the AAC's decision on the ground that the assessee had placed no material to show that the rent paid would cover not only the buildings but also the surrounding lands. On reference : Held In view of the fact that the lessees of the impugned premises were not shown to have taken on lease the entire properties, including the vacated site, the rent paid by them had to be taken to be only for the building and the appurtenant land. The Tribunal was, therefore, justified in adopting the rental basis for fixing the value of the building and actual market value for the vacated land other than the land appurtenant to the building. Case review Gouthamchand Galada and Gyanchand Galada v. CWT [1972] 86 ITR 292 (Mad.), CWT v. V.C. Ramachandran [1966]60 ITR 103 (Mys.) and CED v. Radha Devi Jalan [1968] 67 ITR 761 (Cal.) distinguished. TAX CASE NO. 477 OF 1977. Cases referred to Gouthamchand Galada & Gyanchand Galada v. CWT [1972] 86 ITR 292 (Mad.), CWT v. V.C. Ramachandran [1966] 60 ITR 103 (Mrs.) and CED v. Radha Devi Jalan [1968] 67 ITR 761 (Cal.). K. Srinivasan for the Applicant. J. Jayaraman and Mrs. Nalini Chidambaram for the Respondent. JUDGMENT RAMANUJAM, J.-The assessee in this case possessed 17 items of immovable properties in respect of which he adopted the valuation of Rs. 3,53,626, which was accepted by the wealth-tax authorities for the assessment year 1960-61. The WTO, for the assessment year 1965-66, found that according…

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