Law: City of Lahore Corporation Act, 1941

Section: 107, 118

City of Lahore Corporation Act (XV of 1941), Ss. 107 & 118 Assessment of annual value-Annual value of a Hotel-Could not be fixed (in view of S. 107) on basis of "Trade Earnings"-Correct basis of assessment would be annual rent which a hypothetical tenant would pay for letting building together with furniture etc. Assessment made, opposed to provisions of S. 107-Appealable under S. 118. Date of hearing : 30th November 1971.                                                                                                                          JUDGMENT MUIIAMMAD YAQUB ALI, J.-The subject-matter of these appeals is assessment of annual value of Faletti s Hotel, Lahore, by the Lahore Municipal Corporation, for the years 1955-56, 195(-57, 1957-58, and 1958-59. The assessments made by the Assessor were set aside by the District Judge, Lahore, on appeals filed by the Associated Hotels of India Limited, proprietor of the Faletti's Hotel, but on further revision petitions filed by the. Corporation, a learned Judge of the High Court held that no appeal lay to the District Judge under section 118 of the Lahore Municipal Corporation Act as the dispute related to quantum of tax payable by the assessee and did not involve the basis or principle on which the assessments were made. Leave to appeal was granted to consider correctness of the interpretation placed by the High Court on section 118 ;which provides for an appeal from the order of the Assessor, if any dispute arises as to the liability of any land or building to assessment or as to the basis or principle of assessment. The assessor determined the annual value on the basis of "Trade Earnings" which according to the appellant was repugnant to the provisions of section 107 which provides that annual value of any building shall -be deemed to be the gross annual rent at which such building…