PALLESWAR SURESH BROTHERS HOTEL SEVEN HILLS KOTAGUDEM Vs. MUNICIPAL COMMISSIONER NOTIFIED AREA KOTHAGUDEM

JUDGEMENT

(1.) THE petitioner constructed a new house completing it on 30th April, 1977, within the area of Kothagudem Municipality. Previously, there was a thatched house that was dismantled and a new house was constructed. It was occupied on 1st May, 1977. (Kothagudem was notified as a municipality on 29th March, 1971.) After the house was constructed, the Commissioner gave a notice on 7th May, 1977, to the petitioner asking for certain particulars. THE petitioner supplied the same and also applied for exemption from tax but it is not necessary to mention any further particulars in that behalf. On 17th August, 1977, the Commissioner served a provisional notice proposing to levy a half- yearly property tax of Rs. 5,167-80 P. upon this house. THE above tax was arrived at on a dual basis. In respect of a part of the house which was let out, the rental value was made the basis and in respect of the part which remained in the occupation of the owner, capital value was made the basis of assessment. THE petitioner filed a revision against the same, but to no effect. THE above tax was said to be payable from 1st April, 1977. It may be stated that a Valuation Officer appointed for the Municipality has assessed the tax for this very house at Rs. 1,886-96 P. with effect from 1st April, 1978. Thus the dispute in this writ petition pertains to the assessment of tax for the year 1977-78 only.

(2.) THE Andhra Pradesh Municipalities Act, as originally enacted, provided for levying property tax both on capital value as well as annual rental value. Where the house was occupied by the owner ; capital valuation was to be followed ; and where it was let out, annual rental value was to be determined. THE relevant provisions of the Act, including sections 85 and 87, were amended by the Andhra Pradesh Municipalities (4th Amendment) Act (XXIII of 1975), whereby the annual rental value was made the only basis of assessment of tax. THE amendment Act came into force on 10th June, 1975. Section 4 of the Amendment Act, provides for validation of certain actions of municipal councils. Sub-section (2) is relevant, which reads as follows : -