A.C. Roy, J. - (1.) This appeal by Corporation of Calcutta raises two questions of importance regarding the law applicable to assessment of annual value of premises for ascertaining the municipal taxes payable to the Corporation under the provisions of Sec. 127 of the old Calcutta Municipal Act of 1923 and also the rights of Corporation to raise an assessment made under that old Act of 1923 by exercise of powers of enhancement under the provisions of Sec. 188 of the new Calcutta Municipal Act, 1951. For proper appreciation of the contentions raised, recounting of the material facts in some details is necessary.
(2.) The premises consisting of a piece of land with structures standing thereon was subject of an agreement for purchase entered into by the intending purchaser, in December 1942, Messrs Howrah Motor Company (P.) Ltd. It was then bearing the number 24 Canal South Road, Calcutta and annual value of the entire premises was at that time Rs. 12,035. The purchase was completed on April 20, 1943.
(3.) Soon after that agreement for purchase, on February 20, 1943, the premises was requisitioned by Government of Bengal under the Defence of India Act, 1939. Monthly compensation for the requisitioned property was fixed at Rs. 2,250 by an agreement dated August 9, 1943. By that requisition the premises was occupied by the Controller of Vagrancy, Government of Bengal. After the Respondents had become owners of the premises the Corporation made an Intermediate Valuation of the premises in 1947 under Sec. 131(2) of the Calcutta Municipal Act, 1923 and by it the annual value was raised to Rs. 21,870 for substantial addition and alteration of the premises. That assessment was operative from April 1, 1947, i.e. first quarter of 1947 -48.;