Life Insurance Corporation of India vs New Delhi Municipal Committee

Sunanda Bhandare, J.

(1) The two points involved in this writ petition are : (1) whether the respondent-Committee can revise the assessment in respect of the property tax retrospectively and (2) what should be the rateable value for purpose of levying the property tax.

(2) A Full Bench of this Court in Life Insurance corporation of India .New Delhi Municipal Committee 1974 Rlr 499 held that the power of the respondent-Committee to revise the rateable value was to be exercised within the same assessment year. The Full Bench judgment of this Court has however been upset and reversed by the Supreme Court in the decision reported in New Delhi Municipal Committee Vs. The Life Insurance Corporation of India, audit has been held that the respondent Committee can revise the rateable value for the purpose of house-tax within a reasonable time.

(3) Learned Counsel for the petitioner very fairly concedes that the petition cannot succeed on the first point. On the second question, however learned Counsel for the petitioner submits that in view of the judgment of the Supreme Court in Dr. Balbir Singh and Others Vs. M.C.D. and Others, the revision of the rateable value has to be on the basis of the standard rent. Undoubtedly, the Supreme Court has clarified the matter and the rateable value fixed by the respondent Committee on the basis of increased rent cannot be sustained. The petitioner is entitled to succeed on the second question.

(4) In the circumstances the writ petition is allowed. The matter is remanded back to the respondent-Committee to make assessment in respect of the assessment year in question fixing the rateable value as per the judgment of the Supreme Court in Dr. Balbir Singh''s case. Needless to say that any revision to be made would be after notice to the petitioner. No costs.