Case Note & Summary
The Municipal Corporation of Greater Mumbai issued special notices in 2001 and 2002 reassessing the rateable value of Dalamal Tower Premises Co-operative Society Limited's commercial building at Nariman Point. The society objected and later challenged the reassessment orders dated 24 March 2004 which revised rateable value retrospectively from 1 April 2000 for the years 2000-2001 to 2003-2004. The society filed statutory appeals before the Small Causes Court and a writ petition before the Bombay High Court. The Single Judge allowed the writ petition on 14 October 2004, quashing the reassessment orders and tax demands insofar as they sought to impose retrospective revision. The Society contended that the reassessment beyond the current official year violated Section 167 of the Mumbai Municipal Corporation Act, 1888, and that the cooperative society as the assessee could not be split into self-occupied and tenanted units for separate assessment. The Corporation appealed the Single Judge's order. The Division Bench heard arguments from senior counsel for both sides, including references to an earlier Division Bench order dated 23 October 2002 directing fresh assessment in accordance with law. The appeal was reserved for judgment on 3 March 2006 and pronounced on 27 March 2006.
Issue of Consideration
Whether the impugned reassessment of rateable value with retrospective effect from 1 April 2000 was valid under the Mumbai Municipal Corporation Act, 1888? Whether the petitioner cooperative society or its members/occupiers are the assessee for property tax? Whether separate assessment of self-occupied and tenanted/licensed units is permissible?
Law Points
- Reassessment under section 167 cannot have retrospective effect beyond commencement of current official year
- Cooperative society is assessee for entire building not unit occupiers
- Self-occupied premises not assessable separately from let out premises
- Repeal of old Rent Act does not alter assessment scheme
