Case Law Details
South Delhi Municipal Corporation Vs B N Magon (High Court Delhi)
Delhi High Court held that as Delhi Municipal Corporation Act, 1957 doesn’t include ‘professional activity’ of lawyers as ‘commercial activity’. Accordingly, under the DMC Act there is no power to tax ‘professional activity’ carried out from residential building.
Facts- This appeal impugns the judgment of the Single Judge holding that services rendered by advocates are professional activities and cannot be classified/categorised or be subject to tax under the category of a business establishment or professional establishment.
The learned Standing Counsel for the Delhi Municipal Corporation (‘MCD’) submitted that clause 15.8 of MPD 2021 apropos professional activity does not in any way circumscribe the powers of the Corporation u/s. 115 and 115A of the Delhi Municipal Corporation Act, 1957.
Conclusion- Hon’ble Supreme Court in the case of R.K. Mittal & Ors. vs. State of Uttar Pradesh & Ors held that under the DMC Act there is no power to tax “professional activities” carried out from residential buildings. Professional activities are permitted under MPD 2010, under certain conditions. The Master Plan has force of law.
Please become a Premium member. If you are already a Premium member, login here to access the full content.