No House Tax `Admissible' On Unoccupied Property
Posted on Mon Aug 04, 2008 at 02:02:51 AM EST
Q. A cinema hall in central zone, Delhi (in operation since 1976 as a single screen theatre) was ordered closed by the Delhi High Court in 2005 (as it was incurring recurrent losses) and no further business was allowed to be transacted. MCD was duly informed of the court decision immediately. What is the property tax liability of this closed cinema? Is there a concession for a closed cinema theatre? Is there any court judgement in this regard in Delhi or else where? If not, is there a case pending in any court? The information is needed as under the unit area method of calculation of property tax the multiplying factor for a cinema theatre is three which puts a lot of economic strain as there is no income from the closed theatre, which awaits public auction as per the same court decision.
A. I understand that the house tax is normally not charged in respect of a property which has remained unoccupied on account of the reasons beyond the control of the owner provided the information thereof is given in advance to the municipal corporation. However, I would suggest that you should consult a lawyer who is dealing with the subject as the issue raised by you is not related to Income-tax. TNS
A. I understand that the house tax is normally not charged in respect of a property which has remained unoccupied on account of the reasons beyond the control of the owner provided the information thereof is given in advance to the municipal corporation. However, I would suggest that you should consult a lawyer who is dealing with the subject as the issue raised by you is not related to Income-tax. TNS
By Sumit Kumar, Section Ask Questions
Posted on Mon Aug 04, 2008 at 02:02:51 AM EST
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