JUDGMENT : 1. We are concerned with premises No. 1, Shakespeare Sarani, Kolkata which is well known as the air-conditioned market. The writ petitioners are the owners of the entire building excepting the second, third, fourth and ninth floors. The second, third and fourth floors were sold by them to Peerless General & Investment Company in 1995. An area measuring 10,317 sq. ft. on the ninth floor was sold on 10th January 1997 to Export Credit Guarantee Corporation of India Limited. 2. The petitioners want reassessment of the annual valuation for the period commencing from fourth quarter 1984-85, fourth quarter 1990-91 and fourth quarter 1996-97. 3. The petitioners have principally two grounds to ask for this reassessment. 4. The first relates to including air-conditioning charges as rent. 5. The second ground is founded on the belief of the petitioners that the said portions which have been sold out are similarly situated as the premises of the petitioners but are being assessed at a lower rate. Hence, the valuation of the subject premises should be similar or less. 6. Mr. Justice Debangsu Basak in the unreported decision in the case of CO No. 2702 of 2004 with analogous matters ABL International Ltd. vs. Sajjan Kumar Tantia decided on 14th August 2014 relying on an earlier judgment of this Court in Pushpa Devi Gourisaria vs. Sudera Enterprises Put. Ltd. (1990) 2 Cal. L.J. 310 said that it was settled law that the air-conditioning charges received by a lessor had to be treated as rent. 7. In my opinion, this kind of computation is not as simple as it appears. Take for an example the case of a premises where the lessor provides air-conditioning service to one lessee who occupies the entire premises. It is not just rendering service. It involves making capital expenditure for constructing the air-conditioning system and making revenue expenditure for running it. The revenue expenditure for running the system would mean and include electricity charges, maintaining cost, cost of air conditioners, raw materials etc. Taking all this into account, the lessor indicates the air-conditioning charges, obviously including an element of profit in it. It involves making capital expenditure for constructing the air-conditioning system and making revenue expenditure for running it. The revenue expenditure for running the system would mean and include electricity charges, maintaining cost, cost of air conditioners, raw materials etc. Taking all this into account, the lessor indicates the air-conditioning charges, obviously including an element of profit in it. If the entire gross sum payable as air-conditioning charges is treated as rent and assuming that the rent also includes the Municipal Tax, following the ratio of the Supreme Court in the case of Calcutta Municipal Corporation vs. Motilal Naresh Kumar, 2007 (2) CHN 143, the annual value would be taken as this gross rent multiplied by 12, then deducting 10% for repairs and 28% for occupiers share of tax. 40% of this annual value would be the tax. 8. Moreover, the lessor would have to pay tax on the gross air-conditioning charges because the Income Tax Act does not provide for any deduction for this kind of rent receipt. 9. This would certainly cause a very unjust state of affairs for the lessor. 10. Therefore, bearing in mind the principle that air-conditioning charges are to be taken as rent, nevertheless, in my opinion to achieve a fair and just result, a computation has to be made of the net rent, treating this part of rent as income from business. 11. The respondent Corporation in their affidavit-in-opposition affirmed on 16th February 2015 has said in paragraph 8 thereof that they had valued the premises for 4th quarter 1996 at Rs. 43,20,000/- with 74% deductions on air-conditioning charges. 12. In my opinion, this principle followed by the respondent Corporation is very sound for the purpose of deciding the net rent in determining net air-conditioning charges which is to be taken as rent. This 74% deduction would take into account the capital cost and the revenue expenditure in running the air-conditioning system. 13. Therefore, the respondent Corporation should also calculate rent on the basis of air- conditioning charges by allowing a 74% deduction on the gross air-conditioning charges received, from 4th October 1996-97. 14. Furthermore the valuation of the said premises from 4th quarter 1996-97 should be made on the same principles as valuation of those portions of the said premises which have been sold to Peerless General Finance and Investment Co. 14. Furthermore the valuation of the said premises from 4th quarter 1996-97 should be made on the same principles as valuation of those portions of the said premises which have been sold to Peerless General Finance and Investment Co. and Export Credit Guarantee Corporation of India Ltd. have been made so far and to such extent as they are applicable in the case of the petitioner. 15. The annual valuation of the said premises from the 4th quarter 1996-1997, after deducting the occupiers share on the basis of Calcutta Municipal Corporation vs. Motilal Naresh Kumar shall be made by the Municipal Corporation on the basis of the above observations. This exercise should be completed within three months from the date of communication of this order by giving an opportunity to the petitioners to produce evidence and to be heard. This writ application is accordingly disposed of. 17. Certified photocopy of this order, if applied for, be supplied to the parties subject to compliance with all requisite formalities.