Y. K. Sabharwal, J.

( 1 ). IN these two writ petitions the question involved is about the assessment of house tax under the provisions of Punjab Municipal Act, 1911 (for short the Act) in respect of Flat No. 3, Gauri Apartments, 3 and 4, South End Lane, New Delhi. In CW. 3908/93, the assessment years in question are 1991-92 and 1992-93. In CW. 4938/93, the assessment year is 1993-94.

( 2 ). THE flat in question has been assessed by the assessing authority at the annual value of Rs. 3,24,000. 00 on the basis of actual rent fetched by the flat at the rate of Rs. 27,000. 00 per month. The appeals filed by the petitioner in respect of the assessments for the years 1991-92, 1992-93 were dismissed by Additional District Magistrate by a common order dated 12th February, 1993 which is impugned in C. W. 3908/93. The Appellate order, however, directed that the petitioner is free to seek rebate for moveable furniture under N. D. M. C. House Tax Bye-laws. Since the appeals as afore- said had been dismissed and orders of assessing authority maintained, the petitioner did not file any appeal against assessment order for the year 1993-94, and challenged the same in C. W. 4938/93. The petitioner seeks quashing of the impugned orders and issue of direction to the respondent to make assessment in accordance with law.

( 3 ). THE flat was let out in terms of lease agreement dated 19th October, 1990. Under the lease agreement the monthly rent agreed to be paid by lessee to the petitioner/lessor is Rs. 15,000. 00.

( 4 ). BY an another agreement entered into between the parties on the same day, namely. , 19th October, 1990 the parties agreed that the lessee/hirer would pay Rs. 12,000. 00 per month to the petitioner as hire charges for the fittings and fixtures as per the list attached with the agreement. This agreement also stipulates that the two agreements shall run concurrently and the agreement for hire of fittings and fixtures will automatically stand terminated once the lease agreement for the flat is terminated. The fittings and fixtures as per the list attached to the agreement are these:

( 5 ). DETAILS of Premises at Flat No. 3, Gauri Apartment, South End Lane (Ground Floor), New Delhi-65. , (including fittings/fixtures etc. ).

( 6 ). THE only contention urged before us is that the rent of the flat is Rs. 15,000. 00 per month as recorded in the lease deed and in law the annual letting value could not be determined by adding to this rental amount, sum of Rs. 12,000. 00 which was hire charges for fittings and fixtures. The main thrust of the contention of learned counsel for the petitioner is that the hire charges of four air-conditioners cannot be taken into consideration while determining the "annual Value" within the meaning of the Section 3 of the Act. Reliance has been placed by Mr. Lekhi on first proviso to Section 3 (1) (c) which provides that in the calculation of the annual value of any premises no account shall be taken of any machinery thereon. The term "annual Value" has been defined in Section 3 (1) of the Act. Section 3 (1) (a) deals with "annual Value" in case of land with which, we are not concerned in these matters. We are concerned with Section 3 (1) (b and c), which read as under:-

"section-3. DEFINITIONS- In this Act, unless there is something repugnant in the subject or context - (1) "annual value" means- (a ). . . . . . . . (b) in the case of any house or building, the gross annual rent at which such house or building together with its appurtenances and any furniture that may be let for or enjoyment therewith, may reasonably be expected to let from year to year subject to the following deductions: (i) such deduction not exceeding 20 per cent of the gross annual rent as the committee in each particular case may consider a reasonable allowance on account of the furniture let therewith. (ii) a deduction of 10 per cent for the cost of repairs and for all other expenses necessary to maintain the building in a state to command s

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