SUMATIBAI DEO Vs. MUNICIPAL COMMITTEE

JUDGEMENT

(1.) THIS is a reference under Section 83(2), C.P. Municipalities Act. In November 1935 the Municipal Committee of Nagpur leased out a vacant site to Mrs. Sumatibai Deo for a premium of Rs. 2800 and an annual ground rent of Rs. 20-8-0 for a period of 30 years with an option of renewal. The land has not yet been built on. The lessee has been called upon to pay the general conservancy tax under Clause (j) of Section 66(1) and the general water rate under Clause (k) of that sub-section. The rules of the committee under Clause (j) provide: There shall be imposed on every building or land without a private latrine a tax for the maintenance of public latrines according to the following scale on its gross annual letting value.

(2.) SIMILARLY under Clause (k) the rules provide: There shall be imposed on every building or land which has no private supply from the municipal water works and which is situated within 200 yards from a public main pipe a tax according to the following scale on its gross annual rental value.

(3.) THE rules make it clear that every building or land, falling within the description given above, must be assessed, and the question then is merely how it should be assessed. Rule 3(1) of the rules dealing with the assessment of conservancy cess and Rule 2(1) dealing with the assessment of water rate provide as follows: The annual letting value of a building or land occupied by the owner himself shall be deemed to be 5 per cent, on the aggregate sum resulting from the addition of (a) the estimated present cost of erecting the building after deduction of a reasonable amount on account of depreciation, if any, and (b) the estimated present value of the land valued with the buildings as part of the same premises. Provided that in the determination of the annual value no account shall be taken of any machinery. Provided further, that in determining the value of the land, the rental which the building fetches or is likely to fetch shall be taken into consideration. If the house or land be occupied by the tenant the same will be assessed according to the actual rent paid by the tenant.