AMRIT LAL Vs. MUNICIPAL COMMITTEE

JUDGEMENT

(1.) ALL the writ petitions relate to the same subject matter relating to property tax. They are decided by common order. The writ petitions are to challenge the assessment to property tax issued by the Municipal Committee under the Punjab Municipal Act, 1911. The petitioner's case was that he was not the owner but he was only a tenant of the premises. He had relied on a rent deed in his favour showing the rental value to be Rs. 2400/ - per annum. He had an objection to the assessment to property tax valuing the property at Rs. 31,006/ - issued under Section 67. His objection was rejected and his appeal was also rejected. The challenge in the writ petition is on the basis that the assessment to property tax under the Punjab Municipal Act should be made only on the basis of the fair rent that property would fetch and under the suggested rent that he would fetch under the Punjab Rent Restriction Act. The Punjab Municipal Act of 1911 stipulates through a definition under Section 3(i) that annual value in case of building which is in the occupation of an owner shall be 5% of the sum obtained by providing the market value of the land and the estimated cost of erecting the building less 10% of depreciation. This is subject to a proviso that calculation of annual value of building no account shall be taken of the furniture or machinery thereon. I asked the counsel for the Municipal Committee before the arguments got underway to let the Court know the basis for the assessment made at Rs. 31,006/ -. The counsel is unable to explain to me in any sense as to how this amount was arrived at. I quash the notice. If it is the property held by the petitioner as an owner, the assessment shall be with reference to the annual value as mentioned under Section 3(i). The property is not in the hands of the petitioner and it is asserted by the petitioner that it is in the hands of the tenant. If it were to be that the rent note relied on by the owner could not be accepted by the Municipal Committee, the Municipal Committee is bound to assess the standard rent payable under the East Punjab Rent Restriction Act for the relevant year when the assessment was made and issue a fresh notice setting out details of valuation and take a decision after allowing the petitioner to participate in enquiry to show cause about the valuation before a final decision is taken.

(2.) THE impugned order is quashed and all the writ petitions are allowed on the above terms.