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Issues:
- Whether a writ could be maintained by challenging a demand raised by Municipal Authorities? - Whether the bar of exhaustion of statutory remedy is absolute? - Whether the price paid for a flat by the flat owner can be used in lieu of the value of land at the time of construction in the cost of construction? Analysis: 1. Maintainability of Writ Petitions: The petitioners filed writs to quash property tax demands for specific years related to flats in New Delhi. They argued that the assessments were not done in accordance with the law and did not consider the purchase price of the flats. The Municipal Authorities contested the petitions, citing the failure of the petitioners to exhaust statutory remedies available under the Punjab Municipal Act. The court noted that the assessments were not justified and referred to relevant legal precedents to support the petitioners' claims. 2. Use of Purchase Price for Assessment: The petitioners contended that the annual value of the flats should be determined based on the consideration amount they paid. The court acknowledged that the cost of land and construction, including the builder's profit, should be considered. It suggested methods to estimate the value of land and construction if the actual costs were unknown, emphasizing the importance of accurately assessing the annual value for tax purposes. 3. Exhaustion of Statutory Remedy: The court discussed the principle of exhaustion of statutory remedies and exceptions to this rule. It highlighted that the lack of jurisdiction or violation of fundamental rights could justify bypassing the statutory remedy requirement. Legal precedents were cited to support this exception, emphasizing the importance of considering the nature of the alleged violation when determining the necessity of exhausting statutory remedies before seeking a writ. 4. Judicial Review and Compliance with Legal Precedents: The court emphasized the importance of following legal precedents set by higher courts, such as the Supreme Court, in assessing property tax matters. It noted that quasi-judicial authorities must adhere to established legal principles and rulings. The court found that the assessing authority had not followed relevant judgments, leading to the decision to allow the writ petitions, set aside the assessment orders, and direct a fresh assessment in line with Supreme Court directions and legal requirements. 5. Final Decision: The court allowed the writ petitions, overturned the assessment orders, and instructed the assessing authority to reconsider the matter in accordance with the law and Supreme Court directions. The parties were directed to bear their own costs, concluding the judgment.
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