GURPARSHAD KHANNA Vs. MUNICIPAL CORPORATION, AMRITSAR

JUDGEMENT

(1.) CHALLENGE in this writ petition under Articles 226 and 227 of the Constitution of India is to the order Annexure P-3 passed on 21.2.1985 by the Assistant Commissioner, Municipal Corporation, Amritsar whereby the assessment of the property of the petitioner was fixed and the order Annexure P-4 dated 25.2.1986 passed by the Commissioner, Jalandhar Division, Jalandhar whereby appeal preferred by the assessee against the aforesaid order of the Assistant Commissioner was dismissed.

(2.) THE facts as set out in the petition are that the petitioner is the owner of property No. 1102/Q-XIII, situated at Maqbool Road, Amritsar, the major portion of which is in self-occupation of the petitioner and the remaining has been let out on rent for commercial purposes. Initially, the respondent- Corporation had been charging house tax on this property at the rate of Rs. 77.76 per annum till the year 1978-79 and thereafter the respondent charged house tax at enhanced rate from time to time and ultimately charged house tax at Rs. 531.60 per annum at the annual letting value of Rs. 4,400/- by virtue of an agreement arrived at between the parties. Accordingly, the petitioner paid the house tax at the latter rate assessed at the annual letting value of Rs. 4,400/- per annum and the same was accepted by the respondent Corporation. Thereafter, the petitioner was served with a notice dated 8.2.1984 (Annexure P-1) under Section 103 of the Punjab Municipal Corporation Act, 1976 (for short "the 1976 Act") by the respondent whereby assessment of the annual letting value of the property, which was previously being assessed at the annual letting value of Rs. 4,400/-, was proposed to be enhanced to Rs. 21,642/- for the purpose of levy of house tax on the property. To the proposed assessment at the annual letting value of Rs. 21,642/-, the petitioner filed objections dated 28.2.1984 (Annexure P-2) and 26.12.1984. The objections filed by the petitioner were rejected and the respondent by order Annexure P-3 passed by the Assistant Commissioner, Municipal Corporation, Amritsar on 21.2.1985 assessed the property of the petitioner at the annual letting value of Rs. 21,642/-, which according to the petitioner was almost five times of the agreed assessment of Rs. 4,400/- per annum. Being aggrieved by the order Annexure P-3, the petitioner preferred appeal before the Commissioner, Jalandhar Division, Jalandhar who upheld the order Annexure P-3 and dismissed the appeal by order Annexure P-4. This is how, the petitioner has challenged herein both the orders.

(3.) LEARNED counsel for the respondent by referring to the reply by way of affidavit of the Executive Officer, Municipal Corporation, Amritsar, tried to justify the action of the respondent and defended the orders Annexure P-3 and P-4. In the reply, while admitting that the property in question is owned by the petitioner, it has been stated that the property is occupied by the petitioner either for residential purpose or for commercial purpose and no part of it has been legally rented out. As a matter of fact, the whole of the property is in occupation of Gur Parshad, petitioner and his family members. It is further stated that the petitioner did not care to notice the changes made regarding determination of rateable value of lands and buildings in terms of the Punjab Municipal Act, 1976 which came into force within Corporation Area of Amritsar with effect from 30.3.1977 whereby fundamental changes in the matter of assessment of different properties had been brought about as compared to the provisions of the Punjab Municipal Act, 1911 whereunder originally, the annual rental value of the property had been assessed at Rs. 4,400/- on 10.2.1977. It is also stated that the provisions of the East Punjab Urban Rent Restriction Act, 1949 have no applicability to the property in question as the annual rental value of the property has to be fixed in terms of "the 1976 Act"). It was further stated that assessment of the annual rental value at Rs. 21,642/- has been made by taking fresh measurements of the built-up area and on the premises that the previous assessment had been erroneously made and all additions and alterations effected in the building since the previous assessment at Rs. 4,400/- per annum, as fully noticed in the reply itself, were taken into consideration while making the latest assessment of the annual rental value. In the end, it was stated that the assessment at Rs. 21,642/- was amply justified by the provisions of Section 93 of the 1976 Act.