Case Note & Summary
The petitioner, M/s B M Habitat, a partnership firm represented by its partner Deepak Lulla, filed a writ petition under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka at Bengaluru. The petitioner sought a writ of certiorari to quash an order dated 15.2.2018 passed by the Commissioner and Competent Authority, Mysuru City Corporation (respondent No.1), demanding property tax from 17.01.2008, and a writ of mandamus directing the respondents to consider the petitioner's representation dated 27.12.2013. The petitioner was aggrieved by the demand for property tax calculated from 17.01.2008, which was the date of approval of the building plan, whereas the petitioner contended that property tax could only be levied from the date of completion of construction. The respondents, represented by Sri. Pallava R., Advocate, opposed the petition. The Court, after hearing the parties, analyzed Section 147 of the Karnataka Municipal Corporations Act, 1976, which governs the levy of property tax. The Court observed that the provision clearly states that property tax is leviable only from the date of completion of the building, not from the date of approval of the plan. The Court found that the demand made by the respondents from 17.01.2008 was contrary to the statutory provision. Consequently, the Court allowed the writ petition, quashed the impugned order dated 15.2.2018, and directed the respondents to consider the petitioner's representation dated 27.12.2013 and recompute the property tax from the date of completion of the building in accordance with law.
Headnote
A) Municipal Law - Property Tax - Levy from Date of Completion - Section 147 of the Karnataka Municipal Corporations Act, 1976 - The petitioner challenged a property tax demand from 17.01.2008, the date of approval of the building plan, contending that tax could only be levied from the date of completion of construction. The Court held that under Section 147, property tax is leviable only from the date of completion of the building, not from the date of approval of the plan. The impugned demand was quashed, and the respondents were directed to consider the petitioner's representation and recompute the tax from the date of completion. (Paras 1-5)
Issue of Consideration
Whether property tax can be demanded from the date of approval of the building plan or only from the date of completion of construction?
Final Decision
Writ petition allowed. The impugned order dated 15.2.2018 passed by respondent No.1 is quashed. Respondents are directed to consider the petitioner's representation dated 27.12.2013 and recompute the property tax from the date of completion of the building in accordance with law.
Law Points
- Property tax is leviable only from the date of completion of construction
- not from the date of approval of building plan
- Section 147 of the Karnataka Municipal Corporations Act
- 1976
- Writ of Certiorari
- Writ of Mandamus
