Canara Bank vs Ahmedabad Municipal Corporation

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1995 Supreme(SC) 233

SUPREME COURT OF INDIA
Kuldip Singh, N Venkatachala
CANARA BANK AND ANOTHER, APPELLANTS
VERSUS
MUNICIPAL CORPORATION OF AHMEDABAD, RESPONDENT.
Civil Appeals Nos. 9289-90 of 1994, decided on February 14, 1995.

Important Points

Municipal tax paid directly by a tenant to the municipal corporation is includible in the annual letting value for the purpose of computing the gross rateable value for levying property tax.

Subject

Tax Law - Municipal Property Tax

Act Referred

BOMBAY PROVINCIAL MUNICIPAL CORPORATION ACT: S.2(1)(a), S.129(c)

Headnote

(A) Bombay Provincial Municipal Corporation Act, 1949 - Section 2(1-A) - Annual letting value - Computation of gross rateable value for levying property tax - Whether municipal tax paid directly by the tenant to the corporation can be included in the annual letting value - Held: Such directly paid tax can be taken into consideration for the purpose of computing the annual letting value.

Facts of the case:
A dispute arose regarding the computation of gross rateable value for the purpose of levying property tax. The primary contention was whether municipal tax paid directly by a tenant to the municipal corporation should be included in the annual letting value as defined under the relevant municipal act.

Findings of Court:
The court found no infirmity in the reasoning of the lower court, which had held that taxes paid directly by the tenant to the corporation are includible in the annual letting value.

Issues: Whether municipal tax paid directly by the tenant to the corporation can be included in the annual letting value as defined by Section 2(1-A) of the Bombay Provincial Municipal Corporation Act, 1949 for the purpose of computing gross rateable value of the rented premises for the purpose of levying property tax.

Ratio Decidendi: The court affirmed that municipal tax paid directly by a tenant to the corporation is includible in the annual letting value for the purpose of calculating the gross rateable value for property tax.

Result: Appeals are dismissed with no costs.

Legal Category Hierarchy

ORDER

The question before the Full Bench of the Gujarat High Court was whether municipal tax paid directly by the tenant to the Corporation can be included in the annual letting value as defined by Section 2(1-A) of the BOMBAY PROVINCIAL MUNICIPAL CORPORATION ACT , 1949 for the purpose of computing gross rateable value of the rented premises for the purpose of levying property tax by the Corporation under the Act. The appellants contention was that such directly paid tax by the tenant could not be taken into consideration to swell the annual letting value for the purpose of the property tax. The Corporation contended to the contrary. The Full Bench of the High Court rejected the contention of the appellants and accepted the contention of the Corporation. We have been taken through the judgment of the High Court. We see no infirmity in the same. We agree with the reasoning and the conclusions reached therein. The appeals are dismissed with no costs.