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Delhi High Court

Central Board Of Secondary Education vs Municipal Corporation Of Delhi on 6 August, 2009

Author: Badar Durrez Ahmed

Bench: Badar Durrez Ahmed, Veena Birbal

        THE HIGH COURT OF DELHI AT NEW DELHI
%                                       Judgment delivered on: 06.08.2009

+               W.P.(C) 4160/1994

CENTRAL BOARD OF SECONDARY EDUCATION                              .... Petitioner

                                    - Versus -


MUNICIPAL CORPORATION OF DELHI                                   .... Respondent

Advocates who appeared in this case:-
For the Petitioner       : Mr Amit Bansal
For the Respondent       : Mr Sanjeev Sabharwal with Mr Hem Kumar


CORAM:
HON'BLE MR. JUSTICE BADAR DURREZ AHMED
HON'BLE MS. JUSTICE VEENA BIRBAL

1.     Whether Reporters of local papers may be allowed
       to see the judgment?

2.     To be referred to the Reporter or not?

3.     Whether the judgment should be reported in Digest?

BADAR DURREZ AHMED, J (ORAL)

1. This writ petition is directed against the assessment order dated 18.03.1994 passed by the Deputy Assessor & Collector (GRP) of the MCD. The petitioner is the Central Board of Secondary Education, which is under the control of the Central Government through the Ministry of Human Resource Development. The plea taken by the petitioner is that it is an educational institution and, therefore, it would fall within the meaning of "charitable purpose" as appearing in Section 115 (iv) of the DMC Act, 1957 (hereinafter referred to as the „said Act‟). Consequently, it is the petitioner‟s case that it would be entitled to exemption from general tax. WP(C) 4160/94 Page No. 1 of 3

2. The learned counsel for the petitioner pointed out that the plea of exemption was specifically taken when a notice had been received by it. He referred to various representations dated 16.12.1993, 20.12.1993, 22.02.1994 and 28.02.1994. In all these representations, the specific plea of exemption was taken. He submitted that while this was the major ground in response to the show cause notice issued by the respondent MCD, the assessment order does not make any determination on this aspect of the matter. The assessment order straightaway goes on to make the calculations of rateable value whereupon the impugned bill dated 19.09.1994, seeking an amount of Rs 61,38,880/- by way of arrears, has been raised.

3. We have heard the learned counsel for the parties. We agree with the submission made by the learned counsel for the petitioner that the impugned assessment order dated 18.03.1994 does not at all discuss the question of exemption. For this reason, we are of the view that the matter should be sent back to the Assessor and Collector to determine the issue of exemption under Section 115(iv) of the said Act as it was applicable at that point of time. Insofar as computation of rateable value is concerned, we are not inclined to disturb the said finding. However, the question of rateable value and consequent billing would only arise after a decision is returned on the question of exemption under the said Section 115(iv).

4. We remand the matter to the Assessor & Collector for determination of the question of exemption under Section 115(iv) of the said Act. The WP(C) 4160/94 Page No. 2 of 3 parties would be entitled to place additional material before the said Assessor & Collector in order to substantiate their pleas. Since this matter is of 1994, we hope that the proceedings with regard to determining the question of exemption would be concluded within eight weeks. The petitioner shall appear before the Assessor & Collector on 26.08.2009 in the first instance at 11 am. The impugned bill dated 19.09.1994 is set aside.

The writ petition stands disposed of.

Dasti to both sides.

BADAR DURREZ AHMED, J VEENA BIRBAL, J AUGUST 06, 2009 SR WP(C) 4160/94 Page No. 3 of 3