STATE OF PUNJAB & ANOTHER vs BRITISH INDIA CORPORATION LTD.

The Supreme Court ruled that the properties in question, used for indoor games and as residential quarters for factory workers, are exempt from taxation under Section 4 of the Punjab Urban Immovable Property Tax Act, 1940. The Court held that such usage is essential for maintaining the efficiency of workers, which qualifies as 'used for the purpose of a factory'. Furthermore, the Court clarified that 'rent' in the Punjab Urban Immovable Property Tax Rules, 1941, refers to payments made by tenants to landlords, excluding payments by licensees. The High Court's decision to quash the assessment orders was upheld.