AMRITHA THEATRE Vs. TAHSILDAR

JUDGEMENT

(1.) This writ petition arises out of an assessment to tax under the Kerala Building Tax Act, 1975 (the Act) in respect of a building put up by the petitioner. It is a cinema threatre, the construction of which was completed on August 27, 1985 and in which exhibition of films commenced on September 14, 1986. The petitioner declared the capital value of the building for purposes of assessment under the Act at Rs. 2,80,000. But the assessing authority determined the capital value at Rs.7,58,344/- and completed the assessment accordingly. In fixing the annual value and consequently the capital value at this figure, the assessing authority took into account the projector, the furniture (ie. seats for the film viewers) and the generator installed in the theatre, treating them as amenities provided in the building, made relevant by S.6(4)(d) of the Act This order was set aside in appeal and the matter remitted back to the assessing authority for reconsideration of the question whether the aforesaid items were liable to be taken into account, in the determination of the annual value of the building. The assessing authority however stuck to his view and by his proceedings Ext. P5, affirmed the earlier determination of the capital value made by him at Rs.7,58,344/-. This was confirmed in appeal by the second respondent Revenue Divisional Officer by his order Ext. P6.

(2.) The ratio of the order Ext. P6 was that items like projector, generator etc. are "unavoidable parts" for the profitable running of the building as a cinema theatre and therefore they were liable to be taken into account in fixing the capital value.

(3.) The writ petition is filed challenging Exts. P5 and P6. The only question raised is that the authorities should have eschewed the projector, the furniture and the generator from consideration while determining the annual value of the building.