PHUL THEATRE Vs. THE MUNICIPAL COMMITTEE AND ORS.

JUDGEMENT

(1.) This judgment will dispose of Civil Writ Petition Nos. 3932 and 3933 of 1979 which contain similar questions of law. The facts in the judgment are given from Civil Writ Petition No. 3932 of 1979.

(2.) The Petitioner is a partnership concern and is carrying on the business of exhibiting cinematograph pictures in the theatre known as Phul Theatre, Patiala. This theatre is situated within the municipal limits of Municipal Committee, Patiala and was started in March, 1950. The Municipal Committee, Patiala, Respondent No. 1, hereinafter referred to as the Municipal Committee, imposed house tax on the theatre in 1954 and fixed its annual rental value for the purposes of levying house tax at Rs. 17,500/ -. The rate of the tax was 6/1/4 per cent. The house tax continued to be imposed till 1961 -62. The house tax was abolished by the Punjab Government on February 12, 1962. It was reimposed on April 1, 1965 and the above property was assessed at the same annual rental value, that is, at Rs. 17,500/ -upto the year 1967 -68. Later, the annual rental value was enhanced to Rs. 25,000/ -

(3.) On March 25, 1976, a notice was issued under Ss. 65 and 67 of the Punjab Municipal Act, 1911, by Respondent No. 1, proposing the annual rental value for the purposes of house tax at Rs. 12,592/ -. The Petitioner filed objections against that notice on April 19, 1976, wherein it was pleaded that the rental value could not be increased except in accordance with the provisions of the East Punjab Urban Rent Restriction Act, hereinafter called the Rent Act. It was further stated that no addition or alteration had been, made in the property on account of which the annual value could be increased. On 10th December, 1976, the Sub -Committee before which the matter came up for hearing, determined Rs. 4,69,440/ - as the gross income of the cinema on the basis of the number of shows held daily, the number of the seats in different classes in the hall and the rates of admission to the classes. Out of that amount, rebates were given for payments to Film distributors, expenses incurred for establishment, publicity etc. Ultimately, after deducting the rebates, the income of the cinema was determined at Rs. 62,592/ -. An amount of Rs. 15,000/ -was added to that income on account of the income of cycle -stand and canteen and thus the annual rental value was fixed at Rs. 77,592/ -.