Dismissing the appeal of the revenue the Court held that the Tribunal was correct in holding that the value of the property declared by the assessee was the correct fair market value as on the valuation date. The emphasis placed upon the expression “rent received or receivable” in clause (2) of the Explanation to rule 5 of Schedule III to the Wealth-tax Act, 1957 , ought not to be given a wide interpretation as sought.(AY.1992-93)
DIT Wealth-Tax v. Hersh W. Chadha (2018) 401 ITR 502/165 DTR 52/ 302 CTR 245 (Delhi) (HC)
Wealth-tax Act, 1957
S. 2(ea): Valuation of asset – Immoveable property – Lessee sub-leasing property for higher rent and receiving deposit- Value Of Property declared by assessee was correct fair market value as on the relevant valuation date — Amount paid by lessee was not assessable as income of assesse. [ S. 5, 7 , Wealth-tax Rules, 1957 ]