- (1.) This appeal calls in question the judgment and order of the High Court of Gujarat dated 8th November, 1990 and arises in the following circumstances :- The appellant is a cooperative society registered under the Gujarat Cooperative Societies Act, 1961. The respondent a Corporation Constituted under the Bombay Provincial Municipal Corporation Act, 1949 (hereinafter referred to as 'the Act') served the appellant with a show cause notice of assessment in respect of the building constructed by the appellant on Survey Nos. 95 and 96, Paiki of Ward No. 14, Umarwada on the land taken on lease by it from Surat Municipal Corporation. The appellant has constructed a textile market at the said site. The appellant filed objections to the said notice of assessment. After hearing objections, the assessment proceedings were finalised and the appellant was informed. The respondent while finalising the assessment proceedings added an amount of Rs. 5,508/-, being 50% of the income derived by the appellant, in the rental value of revolving restaurant, holding that the appellant derives income from the lift which is provided for taking visitors from the ground floor to the 14th floor, where the revolving restaurant is situated. The assessment order was challenged through a Municipal Assessment Appeal in the Court of the learned Civil Judge (Senior Division), Surat. By an order dated 26th August, 1977, the appellate authority dismissed the appeal holding that the appellant had let out the revolving restaurant with the convenience of the lift and the charges collected by it from the customers at the rate of Re. 1/- per person visiting the revolving restaurant by using that lift were to be included in the rental value. A Regular Civil Appeal was thereafter filed under Section 411 of the Act by the appellant against the judgment and order dated 26th August, 1977. The second appeal was dismissed and the judgment and order of the first appellate court was confirmed on 18th October, 1979. The appellant thereafter filed a writ petition under Articles 226/227 of the Constitution of India in the High Court of Gujarat challenging the judgment and order dated 18th October, 1979 passed by the learned Extra Assistant Judge, Surat in the Regular Civil Appeal. The writ petition also came to be dismissed on 8th November, 1990. Hence this appeal by special leave.
(2.) The basic question which requires our consideration in this appeal is whether the charges which the appellant collects at the rate of Re. 1/- per person for use of the lift could be added to the rental value of the revolving restaurant located on the 14th floor of the building for purposes of computation of property taxes by the respondent-Municipal Corporation
(3.) To answer the question it would be appropriate to first refer to the definition of the 'annual letting value'. The 'annual letting value' has been defined in Section 2 (1A) of the Act, the relevant portion of which reads as follows :- 'annual letting value' means,- (i) in relation to any period prior to 1st April, 1970, the annual rent for which any building or land or premises, exclusive (of) furniture or machinery contained or situate therein or thereon, might, if the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (Bom. LVII of 1947) were not in force, reasonably be expected to let from year to year with reference to its use; (ii) in relation to any other period, the annual rent for which any building or land or premises, exclusive of furnitures or machinery contained or situate therein or thereon, might reasonably be expected to let from year to year with reference to its use; and shall include all payments made or agreed to be made to the owner by a person (other than the owner) occupying the building or land or premises on account of occupation, taxes, insurance or other charges incidental thereto;";