1988 (11) TMI 17 - HC - Income Tax

Summary

Issues: Jurisdiction to levy non-agricultural land assessment tax under the Andhra Pradesh Non Agricultural Lands Assessment Tax Act, 1963.

In the case before the Andhra Pradesh High Court, the petitioner, a Government of India undertaking, challenged the jurisdiction of the respondents to impose non-agricultural land assessment tax under the Andhra Pradesh Non Agricultural Lands Assessment Tax Act, 1963. The petitioner had been allotted 330 acres of land by the State Government for a project purpose, with the land still registered as Government property. The petitioner argued that since the land was owned by the State Government and they were in permissive possession for a public purpose, they were not liable to pay the tax under the Act. The respondents contended that the company being in possession incurred the liability under section 10 of the Act. The court considered the definitions of "occupier" and "owner" under the Act to determine liability. The court noted that the petitioner was neither an owner nor a lessee as defined under the Act. The court analyzed sections 3, 10, and 12 of the Act, which outlined the charging, recovery, and exemptions regarding non-agricultural land tax. Section 12 exempted lands owned by the State Government unless leased out for commercial, industrial, or non-agricultural purposes. Since the land was not leased out to the petitioner for such purposes, the court held that the petitioner was not liable to pay the tax. The court concluded that the levy and assessment of tax on the exempted land were without legal authority, allowing the writ petition in favor of the petitioner and ordering no costs to be paid.