BALU Vs. STATE OF KERALA

JUDGEMENT

(1.) PETITIONER is a partner of Anugraha Builders which is described as a building developer. The firm has constructed a multi-storyed building consisting of twenty two Hats on contract basis, being entrusted to do so by twenty two different persons. The land on which the building was put up belonged to one Vinod Kumar, who entered into an agreement with the firm to develop the land, besides executing a power of attorney empowering the petitioner, as partner of the firm, to enter into contracts with interested persons to construct apartments, and thereafter to effect sale of the undivided proportionate interest in the land to the owners of the apartments.

(2.) ON the basis of the agreement with the owner of the property, the firm obtained permit from the Corporation of Thiruvananthapuram for construction of the multi storeyed building consisting of twenty two residential flats. The firm undertakes construction works, and accordingly entered into contracts with various persons for construction of flats for them, according to the plan, lay-out and design prepared by it. The outlay on the construction was provided by these persons, and after completion of the construction the undivided interest in the land was transferred to the owners of the flats by-separate deeds of sale, which contained among others, the covenants to be complied with by the vendee in the user of the flats. The petitioner's case is that the case squarely falls within Explanation 2 to S. 2 (e)of the Kerala Building Tax Act, 1975, and each of the flats has to be treated and assessed as a separate building. The third respondent assessing authority did not find his way to accept this contention and completed the assessment ext. P7 treating the entire building as one unit and levying tax as such. Petitioner challenges Ext. P7.