R.K. KHANNA Vs. NEW DELHI MUNICIPAL COUNCIL

JUDGEMENT

(1.) THE writ petition raises a question as to whether an accommodation which is used as a transit accommodation for the employees of a company is liable for property tax at residential or commercial rates.

(2.) THE petitioner is the owner of property No. 90, Jor Bagh, Delhi and rented out the same to M/s. Glencore India Private Limited with effect from 1.5.1996. The Assessing Authority wide order dated 27.12.1999 assessed the property and included the notional interest on advance rent as part of the report and further held that the property is to be construed as one being used as commercial guest house. On the petitioner impugning the said decision before the Appellate Authority, the said order was set aside by an order dated 12.7.2000 and the matter was remanded back to the Assessing Authority with a direction to deal with the aspect of rate of tax.

(3.) THE petitioner preferred four appeals in respect of four assessment years 1997 -1998 to 2000 -2001 in respect of the assessment order dated 10.1.2000 and the said appeals were dismissed by an order dated 30.8.2001 of the Appellate Authority. The Appellate Authority held that the petitioner was liable to pay property tax applicable to commercial properties and if an accommodation is used as a property for residence of its employees from time -to -time in the nature of transit accommodation, it has to be treated as a property used for commercial guest house or commercial activity. The decision of the Appellate Authority is based on the judgment of the Supreme Court in New Delhi Municipal Council v. Sohan Lal Sachdev, 83 (2000) DLT 664 (SC)=AIR 2000 Supreme Court 1859. Petitioner aggrieved by the said decision has filed the present writ petition.