Abdullah Mohammad Peermohamed vs Municipal Commissioner — 1971 PLD 130

Citation: 1971 PLD 130

Court: Supreme Court of Pakistan

Year: 1970

Decision Date: 1970-12-31

Headnotes

Case cited as PLD 1971 Supreme Court 130

Judgment Text

Court Name: Supreme Court of Pakistan Judge(s):Alvin R. Cornelius, Hamoodur Rahman, Fazal-e-Akbar, Dr. Sheikh Abdul JUDGMENT Reported As: PLD 1971 Supreme Court 130 Result: Order accordingly Judgment JUDGMENT MUHAMMAD YAQUB ALI, J.--These twelve certificated appeals arise out of assessment of annual value of certain hotels in the City of Karachi for levy of property taxes under the City of Karachi Municipal Act, 1933. Under section 97 (2) of the aforesaid Act "annual value" means annual rent (less a deduction of 10 per cent.) for which any building or land exclusive of furniture or machinery contained or situate therein might reasonably be expected to let from year to year. Until 1954, the assessments were made on the basis of rent fixed under agreements of lease between owner and occupier, but in 1955 the Chief Assessor and Collector adopted the formula that 30 % of the charges fixed by the Controller under the Karachi Hotels and Lodging Houses Control Act, 1950, constituted bare rental of each room which multiplied by the total number of rooms x 365 days of the year represented the annual rental value of the hotels which resulted in substantial increase in assessments. Against the assessm ent made by the Chief Assessor and Collector the owners/occupiers raised a number of objections before the Municipal Commissioner, such as, that a certain percentage of rooms remains vacant in hotels; that the occupiers were entitled to a fair percentage of profit on the bare rental of…

Read the full judgment on Al Wakeelo — Pakistan's AI-powered legal research platform.