JUDGMENT

Ruma Pal, J.-The appellant-Society is a charitable organisation. In 1930, it was granted a permanent lease of premises No.1. Red Cross Road, New Delhi. Between 1975-77 the appellant constructed a building on the premises. The building consists of a basement, ground floor and five floors above the ground floor. A portion of the building is used by the appellant for the purposes of its Headquarters and its various offices which include a Blood Bank, St. John s Ambulance Brigade Maternity and Child Welfare Bureau and also the Hindkusht Nivaran Sangh. The balance portion of the building is rented out by the appellant. It is the appellant s case that the rent is utilised wholly for charitable purposes. The appellant has claimed exemption from payment of house tax in respect of the building for the years 1977-78 to the present day.

2. Prior to 1994, house tax in respect of properties in Delhi was imposed under the Punjab Municipal Act, 1911. The Punjab Act was repealed by the New Delhi Municipal Council Act, 1994 (briefly the NDMC Act) as far as New Delhi is concerned with affect from the day that the respondent No. 1 Council was established under Section 3 read with Section 416