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Issues Involved:
1. Maintainability of the writ petition in light of the availability of an alternate remedy. 2. Method of assessing the annual rateable value of a hotel building for property tax purposes. 3. Application of the Delhi Rent Control Act, 1958 to the assessment of hotel buildings. 4. Deficiencies in the information provided by the assessee. 5. Powers of the Assessing Authority under the NDMC Act. 6. Legislative suggestions for simplifying property tax assessment procedures. Issue-wise Detailed Analysis: 1. Maintainability of the Writ Petition: The appellant challenged the order of assessment fixing the annual rateable value of its property. The learned Single Judge dismissed the writ petition as not maintainable due to the availability of an alternate remedy of appeal. However, the court acknowledged an exception to the rule of exclusion of writ jurisdiction due to the serious legal question involved, which required interpretation of legal provisions. The court decided that the writ petition should have been heard and disposed of on merits, given the significant legal issues and the potential impact on revenue recovery for public bodies. 2. Method of Assessing Annual Rateable Value: The court referred to the Supreme Court's decision in NDMC v. East India Hotels, which settled that a hotel is a "premises" under the Delhi Rent Control Act, 1958, and its rateable value must be determined based on the principles laid down in Section 6 of the Act. The court emphasized that the standard rent constitutes the upper limit of the rateable value, and the Assessing Authority must consider factors such as size, situation, locality, and condition of the premises within this upper limit. 3. Application of the Delhi Rent Control Act, 1958: The court clarified that for determining the rateable value of a hotel building, the principles of Section 6 of the Delhi Rent Control Act must be followed, and the provisions of Section 9(4) cannot be resorted to. The court disapproved the Assessing Authority's reliance on Chapter V of the DRC Act, as it was contrary to the Supreme Court's ruling. 4. Deficiencies in Information Provided by the Assessee: The Assessing Authority found several deficiencies in the information provided by the assessee, such as incomplete details about construction costs and discrepancies in declared values. Despite these deficiencies, the court held that the Assessing Authority should have estimated the reasonable cost of construction and market price of the land based on available material, rather than resorting to Section 9(4) of the DRC Act. 5. Powers of the Assessing Authority under the NDMC Act: The court noted that the Assessing Authority failed to exercise its powers under Sections 77, 81, 119, and 122 of the NDMC Act to compel the assessee to provide the required information. The court emphasized that the Assessing Authority should have used these powers or engaged its own valuer if necessary. 6. Legislative Suggestions for Simplifying Property Tax Assessment Procedures: The court highlighted the complexities and ambiguities in the current legislative framework for property tax assessment, leading to voluminous litigation. The court suggested legislative amendments to simplify the basis of taxation and the assessment procedure, such as relating tax to actual rent received or categorizing buildings based on location and use. Additionally, the court recommended amending the provision requiring 100% deposit of tax before filing an appeal, allowing discretionary power to the Appellate Authority to dispense with the deposit in deserving cases. Conclusion: The court set aside the impugned order of assessment dated 18.12.95 and directed the Assessing Authority to reassess the rateable value of the property in accordance with the principles laid down. The court also made observations on the need for legislative amendments to simplify property tax assessment procedures and reduce litigation. The writ petitions were disposed of accordingly, with no order as to costs.
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