Sikri, J. - (1.) This appeal by special leave is directed against the judgment of the High Court of Allahabad accepting a petition under Article 226 of the Constitution and directing the District Board, Moradabad, not to levy upon M/s. Kundan Sugar Mills, Amroha, respondent before us, circumstances and property tax for any one year exceeding the sum of Rs. 200. The High Court held that no special resolution of the Board had been passed, nor had a notification been made imposing the tax, under Section 119 and Section 120, respectively, of the United Provinces District Boards Act, 1922 (U. P. Act X of 1922) - hereinafter referred to as the Act.
(2.) The relevant facts out of which this appeal arises are these:On July 28, 1925, it was notified under sub-section (2) of Section 120 of the Act that the District Board of Moradabad, in exercise of the powers conferred by Section 108 sub-section (2) , of the Act has imposed the following tax with effect from September l, 1925: "A tax on all persons ordinarily residing or carrying on business in the rural area of the Moradabad District according to their circumstances and property, at the rate of four pies per rupee on the total taxable income; provided that the total amount of tax imposed on any person shall not exceed Rs. 200. Provided also that no income once assessed shall be reassessed." On May 28, 1927, the District Board took action upon a memorandum prepared by the Chairman of the District Board. The memorandum of the Chairman pointed out: ".....the maximum amount of tax recoverable from an assessee should be raised from Rs. 200 to Rs. 500 P. A. Hence proposal (c) framed under Section 115 sanctioned by G. O. No........ dated 28-7-25 be so modified as to read as under: "That there shall be a rate of tax of 4 pies in the rupee ....provided that the total amount of tax imposed on any person shall not exceed Rs. 500/- ...."
(3.) The resolution of the Board was in these terms: "The bye-laws be modified accordingly after necessary publication and sanction. The assessing officer to assess them at 2 pies (sic) in anticipation of final sanction." ;