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Punj Sons Pvt. Ltd. vs Municipal Corporation Of Delhi on 13 December, 1996

21. In view of the aforesaid fact the impugned order of the appellate authority and the impugned order of assessing authority are hereby quashed. The matter is remanded back to the assessing authority to determine the rateable value in accordance with law in view of the judgment of the Division Bench of this court in M/s. Punj Sons Private Limited's case (supra) in so far as the factor on the security deposit and advance rent of more than six months is concerned.
Delhi High Court Cites 10 - Cited by 8 - R C Lahoti - Full Document

Sir Sobha Singh & Sons (P) Ltd. vs New Delhi Municipal Council on 1 July, 1996

20. Learned counsel for respondent No. 1 also refers to the same judgment and more specifically para 5.1 above where reference has been made to the judgment in Sir Sobha Singh's case (supra) where the court has noticed that there are cases where huge amounts as interest free security are taken as a device to realise interest instead of Realizing higher rent. Learned counsel for the respondent however, does not seriously dispute the fact that a bare reading of the assessment order shows that there is no finding recorded that the rate of rent was artificially reduced and that the security deposit and advance rent of more than 6 months have been taken only to compensate the lower rent. That being the position, the assessment order cannot be sustained since the assessing authority has to arrive at a finding to this effect before the interest can be included. Merely because security deposit is taken or advance rent is taken of more than six months cannot ipso facto imply that the same is to compensate the reduced rent and the same can be added only once the assessing authority comes to a finding of artificial reduction of rent by making appropriate comparisons.
Delhi High Court Cites 19 - Cited by 13 - R C Lahoti - Full Document
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