Mookerjee, J. - (1.) Premises No. 4. Dum Dum Road was assessed by the Corporation of Calcutta under clause (b) of section 127 of the Calcutta Municipal Act, 1923, with effect from the first quarter of 1938-39. Objection was raised on behalf of the Central Government as the owner of the property and ultimately this Court decided in 1947 [The Governor-General in Council v. The Corporation of Calcutta (1) (51 C.W.N. 517)] that these premises should be assessed under clause (a) of section 127 of the said Act. Although the period for which the assessment had been made which was the subject-matter of the appeal to this Court had expired in 1944 a notice was issued by the Corporation on the 6th July, 1948, purporting to In one under section 136 of the Act on (be assessee to submit a return. The return was submitted (Ex. 1) on the 3rd January, 1949
(2.) The (sic) in question covers a large area (sic)includes 43 different units of quarters . They have been classified by (sic) Union of India into different (sic) of quarters dependant upon the (sic) which is payable by the officers or other occupiers who are allowed to reside therein. One of the structures is a hostel wherein are included a number of smaller units of quarters. In addition to the above; there is one club-house, play-ground and certain other open areas which are used by the occupants jointly The quarters are let out mainly to the employees of the Gun and Shell Factory, an undertaking run by the Union of India. The occupants are charged at 10 per cent, of their pay or the standard rent whichever is lower. The occupiers are not required to pay any share of the municipal rates for the premises. The Government pays both the owner's as also the occupier's shares of taxes.
(3.) In the return Ex. 1, it was claimed on behalf of the Central Government that taking the standard rent fixed for each of the quarters, being the maximum amount leviable for the quarters, and a lump sum of Rs. 500 per month as the rent of the club-house, playground, etc., the total annual rent was Rs. 65,400. On behalf of the assessee Government it was claimed that deductions therefrom should be made of "the usual three 10 per cents." for arriving at the taxable annual value;