The main legal point established is that any amendment in the assessment book for property tax can only be effective during the official year, as per Rule 20(1)(e) of the Act of 1949 and the definition of 'official year' under section 2(44).

JUDGMENT - R.M. LODHA, J.:---By this petition, the petitioner prays for quashing and setting aside the special notice dated 8-1-1991 (Annexure “D”), special notice dated 8-1-1991 (Annexure “E”), bill dated 12-12-1991 (Annexure “G”) and bill dated 12-12-1991 (Annexure “H”).

2. The grievance of the petitioner arises in the following circumstances:

The petitioner has properties bearing Nos. P/B/3/1/101 and P/B/3/1/103 being residential flats at Ajmeera Housing Complex, Pimpri, Pune, (for short, “the said property”). The petitioner is running his hospital in the said property since 1985. The said property has been assessed as residential complex for the purposes of property taxes. By the impugned notices and bills, the said property is sought to be assessed as commercial complex with retrospective effect from 1985 for the purposes of property taxes. According to the petitioner, the demand raised by the respondents is unlawful and in contravention of the provisions of the Bombay Provincial Municipal Corporations Act, 1949 (for short, “Act of 1949”) and the Rules framed thereunder. It is the case of the petitioner that he has filed objections to the notices both dated 16-1-1991, but the respondents have not considered the petitioner's objections and if considered, has not intimated the decision taken on the said representations and instead issued two bills dated 12-12-1991. The only challenge to the aforesaid notices dated 8-1-1991 and the bills dated 12-12-1991 is to the extent the amendment has been made in the assessment book with retrospective effect. According to the petitioner, the said action is in clear violation of Rule 20 of Taxation Rules (Chapter VIII) of the Act of 1949.

3. Rule 20 reads thus :

“20.(1) Subject to the provisions of sub-rule (2) the Commissioner may upon representation of any person concerned or upon any other information at any time during the official year to which the assessment-book relates amend the same.-

(a) by inserting therein the name of any person whose name ought to be so inserted or any premises previously omitted;

(b) by striking out the name of any person not liable to the property tax;

(c) by increasing or reducing the amount of any rateable value and of the assessment based thereupon;

(d) by altering the assessment on any land or building which has been erroneously valued or assessed through fraud, accident or mistake;

(e) by inserting or altering an entry in respect of any building erected, re-erected, altered, added to or reconstructed in whole or in part after the preparation of the assessment-book;

(f) by making or cancelling any entry exempting any premises from liability to any property tax.

(2) Where any amendment is made under sub-rule (1) which has the effect of imposing on any person any liability for the payment of property taxes which would not be incurred but for such amendment or which has the effect of increasing the rateable value of premises as stated in the assessment-book, a special written notice as provided in sub-rule (2) of Rule 15 shall be given by the Commissioner and, as far as may be, the procedure laid down in Rules 16, 17 and 18 shall be followed.

(3) Every such amendment shall be deemed to have been made, for the purpose of determining the liability or exemption of the person concerned in accordance with the altered entry, from the earliest day in the current official year when the circumstances justifying the amendment existed.”

4. The similar provision occurring in Bombay Municipal Boroughs Act, 1925 (for short, “Act of 1925”), came up for consideration before the Full Bench of this Court in (Solapur Municipal Corporation v. Ramchandra Ramappa Madgundi)1, 1972(74) Bom.L.R. 469. The expression “current official year” occurring in section 82(3) of the Act of 1925 was construed to mean the earliest day in the official year which is current when the amendment of the assessment list takes place. In other words, the expression “current official year”, as per the Full B

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