ANANT SINGH Vs. COMMISSIONER ALLAHABAD DIVISION

JUDGEMENT

(1.) The Tax Assessing Officer of the Zila Parishad, Kanpur imposed Circumstances and Property Tax in the sum of Rs. 80.97 on the Petitioner. Aggrieved, the Petitioner filed an appeal, which was dismissed. Hence, the present writ petition.

(2.) The Taxing Officer held that the Petitioner owned about 118 Bighas of agricultural land of which the market value was more than one lac rupees. He determined the annual value at Rs. 5,183.03. On this basis he levied the tax of Rs. 80.97. In appeal, the Commissioner held that the Circumstances and Property Tax is a composite tax bearing on the circumstances and property of a person. It is a tax on a person in relation to his status as well as a tax in respect of his property and the status of the Petitioner was determined by the landed property which he had. Generally speaking the Circumstances and Property Tax is a composite tax. It can be levied on the status of a person also, but under the U.P. Kshettra Samitis and Zila Parishads Adhiniyam, 1961 this tax can be levied subject to the conditions and restrictions mentioned in Section 121 which reads as follows:

(3.) Under Clause (b) a person having a taxable income of less than Rs. 600/- per annum is totally exempt from this levy. Under Clause (c) the rate of tax is not to exceed 3 N.P. in the rupee on the total taxable income. The Explanation says that the taxable income means "estimated income, but shall not include income, of the mentioned classes including the agricultural income as defined in the Indian Income Tax Act, 1922". It is, thus, apparent that whatever be the nature or character of the tax, the Circumstances and Property Tax under the U.P. Kshettra Samitis and Zila Parishads Adhiniyam. could be imposed subject to the conditions and restrictions mentioned in Section 121. One of the conditions is that the measure of tax is the taxable income of the local resident. The Taxing Officer has, therefore, to find the total taxable income of the individual before the tax can actually be levied. Merely be cause a person has a particular status or owns some property or business will not attract actual levy of the tax. It should be found out that he has a total taxable income of more than Rs. 600/- per annum; then, alone he comes within the purview of the levy. In computing the total taxable income the agricultural income has to be excluded.