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TMI Blog1944 (3) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... nnual value of the lands was first to ascertain their capital value, which they did by reckoning them at so much per square yard, and they then took six per cent of the capital value as representing the annual value. On the annual value; so calculated they imposed property tax at the rate of sixteen and a half per cent, per annum. The appellants under protest paid the assessments made upon them in each of the four financial years ending on March 31, 1932, 1933, 1934 and 1935. They now seek to have these payments refunded as having been illegally exacted. In this they have been unsuccessful in both the Courts in India. 3. Many points were raised and many topics were discussed in the course of the proceedings in India, but before their Lor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e levied at such percentages of the annual value of lands or buildings or both as may to fixed by the Municipal Council, subject to the provisions of section 78. (3) The Municipal Council may, in the case of lands which are not used exclusively for agricultural purposes and are not occupied by, or adjacent and appurtenant to, buildings, levy these taxes at such percentages of the capital value of such lands or at such rates with reference to the extent of such lands, as it may fix: Provided that such percentages or rates shall not exceed the maxima, if any, fixed by the Local Government, and that the capital value of such lands shall be determined in such manner as may be prescribed. (4)(a) The Municipal Council may, in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity at certain specified rates. The terms of this resolution give rise to some questions, but the assessment on the appellant was not challenged by them before their Lordships on the ground that there had been no effective resolution to levy property tax. 7. It will be observed that under Section 81(2) the property tax, save as otherwise provided in the Act, is to be levied at a percentage of the annual value of lands or buildings or both. Sub-section (3) otherwise provides inasmuch as it permits, but does not enjoin, the levying of the tax in the case of lands which are not used exclusively for agricultural purposes and are not occupied' by or adjacent and appurtenant to buildings either at a percentage of the capital value of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue in the case of two specified classes of buildings. Therefore, they say, resort to this method is by necessary implication prohibited in every other case, and in particular in the case of their lands. The respondents contest this reading and maintain that the proviso does not impliedly prohibit resort to capital value as a means of getting at annual value in every case not covered by the proviso, and that the chief purposc of the proviso is to be found in the limitation to six per cent, which it contains. 9. Their Lordships cannot accept the appellants' argument which in their opinion involves a misinterpretation of the effect of the proviso. The proviso does not say that the method of arriving at annual value by taking a percenta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o paragraphs. The first imposes property tax in general under Section 81 at a percentage of annual value for each component of the tax ; the second imposes what it calls land tax, presumably a species of property tax (1) on agricultural lands at six per cent, per half year and (2) on other lands which fall under the category specified in Section 81(3) at 1/2 per cent, of the capital value per half year. From this it would appear that the respondents were originally minded to exercise the option conferred upon them by Section 81(3) and to assess lands such as those of the appellants not on annual value but on capital value. The Local Self-Government Department, however, took exception to this part of the resolution on the ground that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . per annum on capital value is more than sixteen and a half per cent, on annual value calculated at six per cent, on capital value. 13. It is manifest that these topics are eminently debatable. As, however, the respondents did not in point of fact proceed under Section 81(3); as the appellants, so far from saying that they should have done so, maintained that the respondents could not lawfully have done so; and as the controversy before their Lordships was confined to the mode of ascertaining annual value under Section 82(2), their Lordships while mentioning those other topics do not feel called upon to make any pronouncement upon them and confine themselves to the matter which alone was directly raised before them and on which they hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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