#Property Valuation

The Bombay High Court struck down an inflated mesne profits award that relied on rental rates from premium commercial zones, ruling that valuation must be grounded in the actual nature, condition, and locality of the disputed property. This sets a critical precedent for landlords and tenants in rent-controlled areas, ensuring mesne profits are calculated based on realistic market conditions, not speculative benchmarks.

ITAT Dehradun rules that State Public Works Department rates must replace Central PWD rates for property valuation under Section 69 of the Income Tax Act, and a 15% self-supervision deduction is compulsory. The ruling eliminates additions for negligible variances, impacting tax assessments for construction costs across states.