AIRPORTS AUTHORITY OF INDIA Vs. DELHI CANTONMENT BOARD

JUDGEMENT

(1.) The challenge by the Petitioner, Airports Authority of India (AAI?), is to an assessment order dated 24 th February 2003 passed by the Respondent Delhi Cantonment Board (DCB?) finalizing the annual property tax assessments for the years 1998-99 at Rs. 12,10,40,791/-, for 1999-2000 at Rs. 13,87,01,935/- and for 2000-2001 at Rs. 16,64,71,391/-. The petition also challenges a bill dated 24 th February 2003 raised by the DCB calling upon AAI to pay Rs. 20,12,06,539/- as house tax under the Cantonments Act, 1924 (CA, 1924) for the period 1 st April 1998 to 31 st May 2002.

(2.) On 26 th May 2003, this Court directed that subject to AAI depositing a sum of Rs. 51,00,000/-, the impugned demand for property tax would remain stayed.

(3.) AAI states that in the year 1940, 718.85 acres of land within the jurisdiction of the DCB comprising Terminal I-B and the domestic arrival buildings consisting of ground floor and mezzanine floor was purchased from the DCB for a sum of Rs. 4,61,95,600/-. This comprised capital cost of the original Terminal I building at Rs. 2,86,54,506/-, electrical installations costing Rs. 1,73,16,144/- which included additions and alterations and cost of land at Rs. 313/- per acre for 718.85 acres at Rs. 2,25,000/-. Terminal I-A was reconstructed in 1998 and the cost of reconstruction as on 31 st March 2001 was Rs. 14,32,12,000/-. Additions and alterations were periodically carried out to Terminal I-B which was originally constructed in the year 1939-41. The cost of construction of Terminal I-B if reconstructed as on 31 st March 2001 would, according to the Valuation Report obtained by AAI, would be Rs. 13,96,94,000/-. In 2000-2001 a domestic arrival hall was reconstructed and as on 31 st March 2001 the cost of reconstruction as per the said Valuation Report was Rs. 6,62,50,600/-. It is stated that the total cost of reconstruction of all three terminals as on 31 st March 2001 excluding the cost of machinery, air-conditioning and other equipments was Rs. 34,91,56,000/-. The area under self-occupation of the AAI is stated to be 12136.65 sq. m., the common area 15178 sq. m and the area given to airlines etc. 7757.65 sq.m. thus totaling 35072.30 sq. m. It is stated that the land appurtenant to the superstructure of 26388 sq. m. (comprising Terminals I-A and I-B and the domestic arrival hall) has also to be valued at Rs. 313/- per acre which works out to Rs. 14,250. On the basis of the judgment in Municipal Board, Saharanpur v. Shahdara (Delhi) Saharanpur Light Rail Company Limited, 1999 AIR(SC) 277 depreciation at 10% on the value of the land and terminal buildings is claimed as it is used by lakhs of people.