The Delhi High Court Bar Association (DHCBA) has moved the High Court challenging the classification of law offices as “commercial activity” for the purposes of calculation of property tax under Delhi Municipal Act.
“A professional activity like an advocate is not a business and cannot be deemed as a commercial activity and as such, the non-residential rates would not apply in the case of an advocate using premises for an office,” the DHCBA’s petition stated.
It explained that the Municipal Corporation of Delhi attributes a use factor to a building depending upon its purpose.
The use factor varies from, 1 (for residential purpose and public purpose) to 10 for star hotels (3 stars and above).
The use factor for industry, entertainment, recreation and clubs has been specified as 3 and that of utilities and business as 2 and 4 respectively.
The Bar Council of Delhi had sent a representation on July 21 to the civic corporations for reduction of use factor 4 to 1 for levying of property tax in respect of offices of advocates in Delhi.
“The respondents [civic corporations] being the assessing authority conveniently ignored the law laid down by the apex court regarding profession of advocates which by no stretch of imagination comes in the category of commercial enterprise, industrial, mercantile, shop or business venture,” the petition stated.
“A lawyer does not render services, conduct business or commercial activities. It is submitted that a lawyer is only an instrument to bring home justice for a litigant,” the DHCBA said.
