BOLLA MAHALAKSHMAMMA Vs. GUNTUR MUNICIPALITY

JUDGEMENT

(1.) Two substantial questions of law have been framed for the determination in the Second Appeal. One is Whether the special notice which does not mention the reasons for enhancement of tax is valid ? Second, is whether in respect of a building covered by the A.P. Buildings (Lease rent and Eviction) control Act, 1960 hypothetical rent arrived at for the purpose of determining the annual rateable value can ignore the actual rent received.

(2.) The Plaintiffs-rate payers who are the appellants herein filed a suit for a declaration that the enhancement of property tax from Rs. 822-08 ps., to Rs. 2351 -81 ps. per half year is arbitrary and illegal. The suit was decreed. However, on appeal, it was set aside. Hence this second appeal.

(3.) The premises comprised building as well as open area wherein a cafe is being run by the first tenant, the second tenant is running a typewriting institute on the first floor and the third tenant is occupying the open space with a tiled shed. These tenants were paying Rs. 175/- per month and the same was enhanced to Rs. 230/- under Ex.A. 1, dt: 21-6-71. In 1972 the tax was enhanced to Rs. 822/- and in 1975 when there was a further enhancement upto Rs. 2351-81 ps. the same was challenge on the ground that reasons were not given for the enhancement.