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Commissioner of Income-tax, Uttar Pradesh Vs. Gappumal Kanhaiya Lal - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtSupreme Court of India
Decided On
Judge
Reported inAIR1951SC5; [1950]18ITR584(SC); [1950]1SCR563
ActsIndian Income-tax Act - Sections 66(1); United Provinces Municipalities Act, 1916 - Sections 9(1), 9(2), 128, 149 and 177
AppellantCommissioner of Income-tax, Uttar Pradesh
RespondentGappumal Kanhaiya Lal
Cases ReferredNew Piecegoods Bazar Co. Ltd. v. Commissioner of Income
Excerpt:
.....- whether tax paid by owner as a lesser should be deducted as an allowance from the bona fide annual value of the determined property - every such tax on annual value is leviable on the actual occupier - in any other case tax is leviable from lessor - section 177 interprets all sums due on account of a tax imposed on the annual value of buildings or lands shall be subject to prior payment of the land revenue - municipal taxes are revenue - supreme court upheld decision of high court. - indian penal code, 1890 sections 300 & 304,part i: [dr. arijit pasayat & ashok kumar ganguly,jj] murder sudden quarrel - deceased protesting against certain action of accused - accused hitting deceased with brick on his head incident taken place out of sudden quarrel, without premeditation held,..........as a lessor under section 149 of that act should be deducted as an allowance from the bona fide annual value of the property determined under sub-section (1) read with sub-section (2) of section 9 of the act, on the ground that such amount is an annual charge, which is not a capital charge to which the property is subject within the meaning of clause (iv) of sub-section (1) of section 9 of the act.' 2. under section 128 of the united provinces municipalities act, 1916, the municipality can impose a tax in the whole or any part of the municipality on the annual value of buildings or land or of both, and a water-tax on the annual value of buildings or land or of both. every such tax on the annual value of buildings or land or both is leviable on the actual occupier of the property upon.....
Judgment:

Mehr Chand Mahajan, J.

1. This appeal from a judgment of the High Court of Judicature at Allahabad dated 31st August, 1944, raises the same points as have been discussed in Civil Appeal No. 66 of 1949 [New Piecegoods Bazar Co. Ltd. v. Commissioner of Income-tax, Bombay [1950] S.C.R. 553. The Income-tax Appellate Tribunal referred four questions to the High Court of Judicature at Allahabad under section 66(1) of the Indian Income-tax Act. These questions related to the year of assessment 1939-40. The High Court answered two of the questions in the affirmative and two in the negative. The two questions relating to the appeal are those that were answered in the affirmative and are as follows :-

'Whether (1) the amount of house-tax and (2) the amount of water-tax, imposed by the Municipal Board of Allahabad under section 128, sub-section (1), clauses (i) and (x), respectively of the United Provinces Municipalities Act, 1916, and paid by the owner as a lessor under section 149 of that Act should be deducted as an allowance from the bona fide annual value of the property determined under sub-section (1) read with sub-section (2) of section 9 of the Act, on the ground that such amount is an annual charge, which is not a capital charge to which the property is subject within the meaning of clause (iv) of sub-section (1) of section 9 of the Act.'

2. Under section 128 of the United Provinces Municipalities Act, 1916, the municipality can impose a tax in the whole or any part of the municipality on the annual value of buildings or land or of both, and a water-tax on the annual value of buildings or land or of both. Every such tax on the annual value of buildings or land or both is leviable on the actual occupier of the property upon which the said taxes are assessed, if he is the owner of the buildings or lands or holds them on a building or other lease from the Crown or from the Board, or on a building lease from any person. In any other case the tax is leviable from the lessor, if the property is let (vide section 149). Section 177 enacts that all sums due on account of a tax imposed on the annual value of buildings or lands or both shall subject to the prior payment of the land revenue, if any, due to His Majesty thereupon, be a first charge upon such buildings or lands.

3. It is apparent therefore that the provisions of the United Provinces Act in respect of the levy of the taxes are substantially similar to the provisions of the Bombay Act discussed in Civil Appeal No. 66 of 1949 [1950] S.C.R. 553. For the reasons given in that appeal and as a result of that decision this appeal stands dismissed with costs and we consider that the High Court of Allahabad has answered the questions above mentioned correctly.

4. Appeal dismissed.


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