VALUATION BY REFERENCE TO PROFITS
In certain type of property the capitalize value primarily depends on the profits resulting from the volume of trade or business e. g hotels, public places cinemas house, etc. In such cases , an estimate is made of the gross profit and from this profit , usual working expenses of the trade are deducted . The net profit is then treated as the gross income from which the net income is worked out and it is multiplied by Y.P to obtain the capitalized value of the property……………..
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