- (1.) THIS petition under Art. 226 of the Constitution raises a short but interesting question as to the interpretation of S. 140 of the U.P. Municipalities Act.
(2.) ONE Lala Jagdish Prasad, the second respondent, owns a building which consists of twenty one godowns. The godowns are employed for the storage of goods and for this purpose have been let out to different parties. For the purpose of determining the "annual value" of the building under the U.P. Municipalities Act, the Tax Superintendent of Municipal Board, Muzaffarnagar, made enquiries and submitted his report to the Executive Officer. On April 4, 1962, the Tax Committee of the Municipal Board determined the "annual value" of the building for the years 1958-59 to 1962-63 at Rs. 8,240 on the method of computation set out in S. 140(1)(b) of the Act, holding it to be a building other than that falling within the provisions of S. 140(1)(a). On this basis, house tax was fixed at Rs. 2,008.50. The second respondent preferred an appeal before the District Magistrate against the assessment and the latter came to the opinion that the "annual value" of the building fell to be computed on the basis provided under Cl. (a), and not Cl. (b), of Sub-S. (1) of S. 140. He took this view on the finding that the second respondent let out the godowns on a dally charge and did not charge rent by the month or a longer unit of time. The Municipal Board, aggrieved by the order of the District Magistrate, has filed the instant petition for certiorari.
(3.) THE only question for consideration is whether the circumstance that a daily charge is levied in respect of the godowns and that rent is not recovered on a monthly basis is a proper test in law for determining whether the building should be considered under Cl. (a) or Cl. (b) of Sub-S. (1) of S. 140 for the purpose of computing its "annual value". Section 140(1) defines "annual value" as meaning :- "(a) in the case of railway stations, hotels, colleges, schools, hospitals, factories and other such buildings, a proportion not exceeding five per centum to be fixed by rule made in this behalf of the sum obtained by adding the estimated present cost of erecting the building to the estimated value of the land appurtenant thereto; and (b) in the case of a building or land not falling within the provisions of Cl. (a), the gross annual rent for which such building, exclusive of furniture or machinery therein, or such land is actually let, or where the building or land is not let or in the opinion of the Board is let for a sum less than its fail letting value might reasonably be expected to let from year to year". The "annual value" is determined because under the U.P. Municipalities Act it is taken into consideration in the assessment of a tax on the annual value of building, in the assessment of water tax, and in the determination of a scavenging tax or a tax for the cleansing of latrines and privies. In order to determine the tax on the "annual value" of buildings, the Municipal Board causes an assessment list of the buildings to be prepared. This list contains several particulars including the annual letting value or other particulars determining the annual value and the amount of tax assessed thereon. The assessment list is published and objections are invited to the valuation and assessment. After the objections are disposed of and the resulting amendments, if any, have been made in the assessment list, the list is authenticated by the signature of the appropriate authority and is then deposited in the Municipal Office and thereupon declared to be open for inspection. Such an assessment list is ordinarily prepared once in every five years, and the valuation and assessment entered therein are valid from the date on which the list takes effect in the Municipality until the first day of April next following the completion of the new list. The assessment list is open to amendment and alteration at any time in respect of a number of matters, among them being the revaluing or reassessing of the property the value of which has been increased by additions or alterations. ;