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…