State Trading Corp. India Ltd. Vs. New Delhi Mnicipal Council
Civil Law - Property Tax
New Delhi Municipal Council Act, 1994 - Sections 63, 416(2) - New Delhi Municipal Committee Byelaws Relating to the Assessment and Collection of House Tax - Punjab Municipal Act, 1911 - Property Tax - Annual Rent - Rateable value - Calculation of - Punjab Act, 1911 has been repealed and as per Section 416(2) of the NDMC Act - What is saved is only the provisions under the bye-laws which are not otherwise inconsistent with the provisions of the NDMC Act - Since there is a provision and procedure under Section 63 the NDMC Act for calculating the annual rent, one need not refer at all to the bye-laws since they are apparently inconsistent with the provisions of the NDMC Act - Only basis for fixation of rateable value is the annual rent at which the land or building might reasonably be expected to be let from year to year, subject to the deductions provided under the Act - The basis of the impugned judgments which was wholly based on the bye-laws having been thus knocked down, Court have to get back to the provisions under the NDMC Act for the purposes of the fixation of the rateable value which is based on the rent which can be reasonably fetched by letting out the premises.
New Delhi Municipal Council Act, 1994 - Sections 63, 416(2) - Property Tax - Annual Rent - Rateable Value - For premises out of the leased premises a portion which is self occupied and the rest let out on sub-lease under due permission from the Government of India - In case the premises is sub-let, there is a condition that the lessee should pay to the Government 25% of the gross rent fetched out of the sub-lease - Held that the 25% that is being paid to the Government of India by the lessee out of the rent collected from the sub-lessee is inflated to include the extra 25% since the rent actually available to the lessee is only 75% of the amount actually paid by the sub-lessee to the lessee - Rateable value under section 63 of the NDMC Act, in the case of the appellants coming under this category has to be fixed on the basis of 75% of the amount received from the sub-lessee by the appellants - On that basis, the rateable value of the premises both tenanted and self- occupied will be fixed by the assessing officer - This is however, subject to the production of proof of payment/adjustment/ appropriation of the 25% by the lessee with the Government of India.
New Delhi Municipal Council Act, 1994 - Sections 63, 416(2) - Property Tax - Annual Rent - Rateable value - Self- occupied buildings - Where there is no sub-lease, the annual rent will have to be fixed on the basis what the landlord might reasonably expect to get from a hypothetical tenant - Such fixation has to be made only as per the NDMC Act - It is for the assessing officer to make the fixation in accordance with law. -The assessment for the disputed period shall be completed within three months - Impugned judgments of High Court liable to be set aside.
Topic(s)-Property Tax - Annual Rent - Rateable Value - Directions Issued