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Issues:
1. Determination of annual value of premises for assessment by Corporation of Calcutta. 2. Interpretation of relevant sections of Calcutta Municipal Corporation Act, 1951 in assessing annual value. 3. Consideration of rental received by tenant from sub-tenants in determining annual value. 4. Application of standard rent in assessing annual value. 5. Apportionment of owner's share of consolidated rate among different grades of owners. Analysis: 1. The case involved the determination of the annual value of premises in Calcutta by the Corporation of Calcutta for assessment purposes. The premises in question were leased by Messrs. A. Firpo Ltd., who had sublet a major part of the premises to five different tenants, resulting in an aggregate rent received from sub-tenants amounting to a higher figure than the original rent paid by Messrs. A. Firpo Ltd. 2. The interpretation of relevant sections of the Calcutta Municipal Corporation Act, 1951 was crucial in assessing the annual value. Section 168(1) of the Act provided the basis for assessment, stating that the annual value shall be deemed to be the gross annual rent at which the land or building might reasonably be expected to let from year to year. The Act also contained a proviso regarding the standard rent fixed under the West Bengal Premises Rent Control (Temporary Provisions) Act, 1950. 3. The Corporation argued that the rental received by Messrs. A. Firpo Ltd. from sub-tenants should be considered in determining the annual value of the premises. However, the Court emphasized that the annual value should be based on the gross rent which the owner may realize by letting the premises, uninfluenced by extraneous considerations, as per the interpretation provided in a previous case. 4. The Court upheld the assessment of annual value based on the standard rent as statutorily determined. It was noted that the absence of an order by the Controller fixing standard rent did not negate the application of the proviso in Section 168(1) of the Act. The standard rent of the premises was established at a specific amount per month, which was considered in the assessment. 5. Regarding the apportionment of owner's share of the consolidated rate among different grades of owners, the Court clarified that the determining factor for annual value was the gross rent at which the land or building might reasonably be expected to let, not the rent received by a tenant from sub-tenants. The apportionment of the consolidated rate among owners was deemed irrelevant in determining the annual value. In conclusion, the Court dismissed the appeal, affirming the assessment of the annual value based on the standard rent and emphasizing that the assessing authority should focus on the gross rent the owner may realize by letting the premises.
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