MANEKLAL A. MEHTA Vs. MUNICIPAL COMMISSIONER
LAWS(BOM)-1962-12-10
HIGH COURT OF BOMBAY
Decided on December 19,1962

Maneklal A. Mehta Appellant
VERSUS
MUNICIPAL COMMISSIONER Respondents


Referred Judgements :-

WESTERN V. KENSINGTON ASSESSMENT COMMITTEE [REFERRED TO]
ST. MARYLEBONE ASSESSMENT COMMITTEE V. CONSOLIDATED LONDON PROPERTIES,LIMITED [REFERRED TO]
MAHAD MUNICIPALITY V. BOMBAY S.R.T. CORP [REFERRED TO]
GULAM AHMED ROGAY V. BOMBAY MUNICIPALITY [REFERRED TO]
BELL PROPERTY TRUST,LID. V. HAMPSTEAD ASSESSMENT COMMITTEE [REFERRED TO]


JUDGEMENT

PATEL,J. - (1.)THIS is an appeal by an assessee against an order made by Mr. Justice Datar in an appeal under the provisions of the Bombay Municipal Corporation Act, 1888, and involves the interpretation of Section 154 of the said Act which runs as follows: (1) In order to fix the rateable value of any building or land assessable to a property -tax, there shall be deducted from the amount of the annual rent for which such land or building might reasonably be expected to let from year to year a sum equal to ten per centum of the said annual rent and the said deduction shall be in lieu of all allowance for repairs or on any other account whatever. Sub -section (2) of Section 154 exempts the value of any machinery contained, or situate in or upon any building or land from being included in the rateable value of such building or land. The rest of the provisions are not material.
(2.)THE assessee owns roughly 75000 sq. yds. of land at Ghatkopar about 3000 feet away from the Agra Road. In the interior of that land he has erected 9 chawls and some other constructions. In order to provide proper access for all these buildings, he has constructed a road measuring about 3000 feet in length and has erected 30 lamp posts 100 feet away from each other thereon. The assessee charges comprehensive rent to the tenants in various chawls. During the assessment proceedings this rent has been taken to be the basis of assessment. The assessee contended that he was required to pay Rs. 1,702 -1 -6 for electric charges for the 30 lamps on the road and that in assessing the rateable value of the chawls he should get deductions for these expenses. His contention was negatived by the Municipal Corporation but was accepted by the Chief Judge of the Small Cause Court in appeal. The Municipal Corporation came in appeal to this Court and Mr. Justice Datar accepted its contention and restored the decision of the Municipal Corporation.
It is contended on behalf of the assessee in this appeal that he is entitled to the proportionate deduction in respect of each chawl out of the electric charges which he pays for all these lamps on the road.

(3.)SECTION 139 of the Act empowers the Corporation to levy the four taxes mentioned in the section which includes 'property taxes'. Section 140 provides that the taxes of so many percentages of the rateable value shall be levied. As to the general tax, the Corporation is entitled to levy not less than 8 per cent, and not more than 26 per cent, of the rateable value plus certain, additions with which we are not concerned. The words 'rateable value' have not been denned in the Act but their meaning has to be gathered from the section above -quoted, and they mean annual rent for which the land or building might reasonably be expected to be let from year to year. In arriving at the rateable value the usual and accepted test is what a tenant willing to take the premises would pay to a landlord willing to let but which, neither of the parties is compelled to take or let; in other' words, necessity of neither of the parties either to take or to let the premises has to be taken into account. But as is made clear by Section 140, the property taxes are levied on buildings and lands and not on anything else. We must, therefore, determine what is the rateable value of the building or the land in respect of which the tax is levied. The word 'building' is defined by Clause (s) of Section 3 to include a house, out -house, stable, shed, hut etc., and it may be assumed that it must necessarily include all such permanent fixtures to the buildings as are intended to be integral parts of it. The rateable value, therefore, of this entity must be determined and any compensation which the. landlord may receive or may be deemed to receive for other things cannot be regarded' as part of the rent which forms the basis of rateable value.


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