FEDERAL BANK LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) Heard Sri N. P. Samuel for the petitioner and Sri S. Vijayan Nair, Government Pleader for the respondents. The facts stated below are based on their submissions as also those disclosed by the files produced by the Government Pleader.

(2.) The writ petition arises out of an assessment to tax under the Kerala Building Tax Act, 1975 (the Act) and the challenge is to the orders Exts. P2, P3 and P6 as explained below. Petitioner, which is a Scheduled Bank; constructed a multi-storeyed building for its Head Office at Aluva. The construction was completed on 13/09/1987. The Aluva Municipality within whose area the building is situated' fixed the annual value of the building under Section 100 of the Kerala Municipalities Act, 14 of 1961 at Rupees 1075632/-.

(3.) The building was assessable to tax under the Act and therefore the petitioner filed return in the prescribed form for purposes of assessment under the Act on 21/03/1988. Against column 7 of the return, "Capital Value of the building", the petitioner mentioned "Rs. 20810330". The petitioner also mentioned in column 13 the amount of Rs. 1075632/- as the annual value of the building fixed by the local authority. Pursuant to a query made by the assessing authoritv namely the Tahsildar, the petitioner informed him by letter dated 31/05/1983 (Ext. P5) that the total amount expended by it on the building was Rs. 248 lakhs, made up of Rs.208 lakhs-cost of civil works including water supply and sanitation, Rs. 11.60 lakhscost of electrical installation works and Rs. 28.40 lakhs-cost of electrical fittings including A. C., transformer, O.C.B., Generator and lifts. The assessing authority obtaine report dated 14/06/1988 from the Revenue Inspector about the capital value of the building at the P.W.D. rates of cost of construction, the value reported being Rs. 9285461/-. The Revenue Inspector made a further report based on the petitioner's letter dated 31/05/1988 that the cost of construction of Rs.248 lakhs and the land value aggregated Rs. 27262297/- and that the capital value of the building on that basis will be Rs. 16357378/-.