KUBRABAI TAHERBAI Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THIS Second Appeal is directed against the judgment of the learned V Additional Judge, City Civil Court, Madras, in A.S. No. 386 of " 1983 confirming the judgment of the XIV Assistant Judge, City Civil Court, Madras, in O.S. No. 2652 of 1979. The plaintiffs in the suit are the appellants in the present Second Appeal.

(2.) THE suit was fried by the plaintiffs praying for a declaration that the plaint Schedule urban land owned by the plaintiffs does not attract the assessment of Urban Land Tax and a consequential relief of injunction restraining the defendant from demanding or collecting the Urban Land Tax relating to the plaint schedule property on the basis that it is not exempted. According to the plaintiffs, they are independent persons having their separate and exclusive sources of income and as such assessed to Income-tax and they were united for the purpose of a joint enterprise to put up a multi-storeyed building in a good non-residential locality and thus own at least one good rent yielding property. With the said intent, they had purchased the suit property from Archbishop of Madras under a registered sale deed dated 23.1.1976. THE price paid was Rs. 4,04,000/-exclusive of stamp duty, registration charges and other expenses and with the result the plaintiffs are the joint owners of the said land of an extent of four grounds and 204 square feet and the building thereon. Except the said property, the plaintiffs do not own any other immovable property. THE plaintiffs would further contend that under the provisions of the Tamil Nadu Urban Land (Ceiling and Regulation) Act XXIV of 1978 (Sic for T.N.U.L. Tax Act, 1966, hereinafter called "the Act") every person owning urban land is entitled to an exemption limit of two grounds and the plaintiffs being four such persons owning urban land, each of them is entitled to the exemption of two grounds, and jointly 8 grounds. THE suit property being only a little over four grounds, falls far below the exemption limit of 8 grounds. But the Urban Land Tax Department did not recognise this method of computation and instead treated the plaintiffs jointly as one legal person entitled to the exemption of only two grounds. THE respondent has treated the suit land as one unit on the ground that the land is not divided by metes and bounds and sub-divided by the recognition of the Revenue Department. According to the plaintiffs, the said assumption was incorrect and the plaintiffs could not be treated as one unit collectively entitled to exemption limit of only two grounds. THE plaintiffs further contended that this Court in a recent judgment has held that notwithstanding the joint - ownership of two or more persons of any urban land, each of them jointly owning it, was entitled to the exemption limit of two grounds, wnen the suit Iand did not exceed the extent thus calculated, according to the plaintiffs, they could not have been assessed at all. However, the Assistant Commissioner of Urban Land Tax granted exemption only to the extent of two grounds and assessed the remaining excess land at Rs. 70,000/- per ground as on 1.7.1971 and levied Urban Land Tax of Rs. 1021.70 for the period from 1.7.1975 to 30.6.1976. THE plaintiffs would further stated that due to ignorance and acceptable reasons, the plaintiffs were not able to file an appeal in time and they were forced to pay the tax for the years 1975-76 and 1977-78. THE defendant was demanding the tax for all the subsequent years under the threat of coercive process and strictly speaking the plaintiffs were entitled to a refund of the tax for the two years already paid under mistake and they reserve their right to file a suit after giving a valid notice under Section 80 C.P.C. Hence the suit.

(3.) LEARNED Government Advocate also relies on the judgment of K. Sampth, J. in S.A. Nos. 693, 698 and 1224 of 1984 dated 22.12.1997, holding that the Civil Court will have no jurisdiction to try any suit claiming a decree for declaration that the plaintiff were not liable to pay any Urban Land Tax.