VIDYA RATTAN SHARMA Vs. STATE OF J&K

JUDGEMENT

(1.) THE Jammu and Kashmir Urban moveable Property Tax Act of 1962 stands need by Jammu and Kashmir Taxation Laws (Amendment) Act of 1997. In terms of section 6 this Amendment Act, a third proviso has been added. Still later on 19/06/1998, SRO 193 was issued. By this notification, rate of tax per annum is to depend upon the covered area of a unit. The covered area in square feet has to be taken note of. It is the proviso added by way of amendment and notification SRO 193 which is subject matter of challenge in this petition.

(2.) BEFORE dealing with the various factual submissions made in this petition, it would be apt to notice section 3 of the Jammu and Kashmir Urban Immoveable Property Tax Act, 1992 (hereinafter referred to as the Act). Section 3 as amended reads as under: -

(3.) LEVY of Tax - (1) Subject to the provisions of this Act, the tax shall be payable by an owner in respect of annual value of property or aggregate annual value of properties owned by him in a rating area at such rate not exceeding 25 percent of the annual value as the Government may by notification in the Government Gazette from time to time, direct in respect of a rating area. If a unit of property is owned by two or more persons as joint owners, tax shall be payable by the owners in respect of such property as a unit and they shall be jointly and severally liable for the payment of tax and other sum payable under the Act. Provided that where the tax calculated on the annual value exceeds the difference between the said annual value and exemption limit, as referred to in clause (c) of sub -section (1), or as fixed by the government under sub -section (2), of section4, the tax leviable shall be equal to the said difference. Provided further that the government may fix graduated rates of tax on different slabs of annual value of such lands and buildings subject to maximum specified in this section. Provided also the government may, by notification in the government gazette, levy tax on a unit of property on lump sum basis in any specified rating area and such tax also shall not exceed 25% of 6.25% current cost of property. (2) Omitted. (3) If the property in respect of which tax is payable is transferred to any other person, whether by sale, gift, exchange, mortgage, inheritance or otherwise, the transferee shall be liable to pay tax or any other sum payable under this Act in respect of the property so transferred for the period prior to the date of transfer and the notice of demand, if any, issued to the transferor shall be deemed to have been issued to transferee; provided that a duplicate copy of such notice of demand shall be served on the transferee. Explanation: - For the removal of doubt it is hereby clarified that if a property is owned by two or more persons in definite and specific portions as co -owners, the tax shall be payable by each co -owner in respect of the annual value of the portion owned by him.  3. SRO 193 issued on 19/06/1998 be also noticed. This is annexure B  with the petition. For facility of reference this is also being reproduced below: - SRO 193 - In exercise of the powers conferred by the third proviso to sub section (1) of section 3 of the Jammu and Kashmir Urban Immoveable Property Tax Act, 1962 (Act No. XXII of 1962), the government hereby direct that the tax in respect of building exclusively used by the owner or any member of his family in the areas specified in the annexure appended herewith shall be levied at the following rates : - Covered Area in Sft. Rate of tax P.A. 1. Upto 1000 sft. Nil 2. 1001 to 1500 sft. Rs. 500/ - 3. 1501 to 2000 sft. Rs. 1000/ -