KOTTILA VEETIL KRISHNAKUMAR Vs. STATE OF KERALA

JUDGEMENT

(1.) The petitioner has approached this Court challenging the levy of luxury tax under the provisions of the Kerala Building Tax Act, 1975 (hereinafter referred to as the '1975 Act'). It is the case of the petitioner that the petitioner had initially constructed a two story residential building with a total area of 315.08 Sq.m. It is stated that the assessment was completed by Ext.P1 proceedings dtd. 14/8/2014 levying luxury tax on the building and the petitioner continued to pay luxury tax on the building.

(2.) According to the petitioner, by registered document No.1356/2018 of SRO Mathamangalam, the 1st floor of the residential building has been settled/transferred to the wife of the petitioner (One Kaniyeri Sreekala) and she is the owner of the 1st floor of the building. It is the case of the petitioner that with the transfer of the 1st floor of the building to his wife, the area of the building in occupation of the petitioner has been reduced to 162.30 Sq.m, which is below the limit for levy of luxury tax. The petitioner is therefore before this Court seeking the following reliefs.

(3.) The learned counsel appearing for the petitioner refers to the provisions of the 1975 Act and submits that there can be a levy of luxury tax at the hands of the petitioner only if the petitioner is in possession of a residential building having an area equivalent to or above the limit specified in Sec. 5A of the 1975 Act. It is submitted that since a portion of the residential building belonging to the petitioner has been transferred/settled in favour of his wife, the area of the building has fallen below the limit specified in Sec. 5A of the 1975 Act, and therefore the petitioner is no longer liable to pay luxury tax.