I am the owner of a building to which recently I made an extension. The M.C.D. reassessed the rateable value taking the market value of the land into account. My plea is that as it was an extension of old building, the standard rate has to be determine in accordance with section 7 of the DRC Act. Whether my contention is valid?

I am the owner of a building to which recently I made an extension. The M.C.D. reassessed the rateable value taking the market value of the land into account. My plea is that as it was an extension of old building, the standard rate has to be determine in accordance with section 7 of the DRC Act. Whether my contention is valid?

In determining the rateable value, the Assessor will first have to examine whether this amounts to an addition in the premises of the existing tenant so as to attract the provisions of section 7 of the Act. If the rest of the new building was self-occupied till portion of the same was let out, the provision of section 7 would not be applicable in determining the standard rent of the rest of the new building. The standard rent of the same will have to be determined by applying the provision of section 6 of the Act, which requires the taking into consideration of the market price of the land on which the premises are constructed.

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