Delhi HC To Hear Plea Challenging Commercial Property Tax On Lawyers’ Offices Next Week

The Delhi High Court on Friday said that it would hear on September 30 a petition filed by an association of lawyers challenging the imposition of commercial property tax on the offices of the advocates by the municipal corporations.

Justice N Waziri said that the issue raised in the petition is of the nature of PIL. The court asked it to be listed before the appropriate bench next Wednesday. This will be subject to the order of the Chief Justice. The petition has challenged the decision of the municipal bodies in which a premises used by a lawyer is considered as ‘commercial activity’ and taxed accordingly.

The Delhi High Court Bar Association (DHCBA) has challenged the assessment order passed in November 2018 by the South Delhi Municipal Corporation in a petition filed by Chairman Mohit Mathur and Secretary Arithi.

After this, any other notice issued by the three municipal corporations has also been challenged. The petition stated that the usage factor system was introduced in the new way of estimating property tax under the Delhi Municipal Corporation Act and there is no specific category for advocates.

But they are being charged based on the methods applicable to commercial property which has the highest tax. The petition states that the lawyers appear in court to represent their clients but in reality they help the court to deliver justice and this cannot be a commercial activity. All three municipal corporations have been made parties in the petition.

By Priya Kumari