- (1.) Leave granted in SLP (C) No. 18110/2006.
(2.) The basis of assessment of property tax under the New Delhi Municipal Council Act, 1994 (in short the "NDMC Act") is the subject matter of these appeals. In Chapter VIII of Taxation, Section 60 of the NDMC Act has dealt with the subject. Under Section 60(1)(a), the Municipal Council is entitled to levy the property tax. Under sub-section (3) the property tax shall be levied, assessed and collected in accordance with the provisions of the Act and the bye-laws made thereunder. Section 61 of the NDMC Act speaks about the rates of property tax and it is provided that unless otherwise specified under the Act, the property tax shall not be less than 10% and not more than 30% of the rateable value of lands and buildings. Section 63 of the NDMC Act deals with the determination of rateable value of lands and buildings. The provision reads as follows: "63. Determination of rateable value of lands and buildings assessable to property tax.-(1) The rateable value of any lands or building assessable to any property taxes shall be the annual rent at which such land or building might reasonably be expected to let from year to year less a sum equal to ten per cent of the said annual rent which shall be in lieu of all allowances for costs of repairs and insurance, and other expenses, if any, necessary to maintain the land or building in a state to command that rent: Provided that in respect of any land or building the standard rent of which has been fixed under the Delhi Rent Control Act, 1958 (59 of 1958) the rateable value thereof shall not exceed the annual amount of the standard rent so fixed."
(3.) Though the learned senior counsel appearing for the appellants sought to place reliance on the proviso under section 63(1) of the NDMC Act, we are afraid the contention cannot be appreciated. The concept of standard rent is no more available under the Delhi Rent Control Act, 1958, since the said provision has been struck down in the case of Raghunandan Saran Ashok Saran (HUF) Vs. Union of India & Others, 2002 95 DLT 508. Additionally, it is also to be noted that the standard rent in the case of the appellants has never been fixed under the Delhi Rent Control Act, 1958.;