Case: Kalyan Municipal Council  Vs. Usha Paper Products Pvt. Ltd.

said Act are in pari materia. As far as the question raised before us is concerned, the provisions of section 82, sub-section (3), of the Bombay Municipal Boroughs Act are in pari materia with the provisions of section 123(3) of the said Act. The Full Bench of the Bombay High Court in that case came to the conclusion that the alteration made, under section 82(3) of the Bombay Municipal Boroughs Act, in the assessment list prepared under section 78 of that Act does not become effective for any period prior to the commencement of the official year in which the alteration in the assessment list is made and, therefore, the municipality is not entitled to levy tax for an official year or any part thereof which has already expired. It was also held that the expression " current official year " in section 82(3) of that Act means the earliest day in the official year which is current when the amendment of the assessment list takes place, that is to say, the expression refers to that official year which is running at the time when the amendment is made by insertion or alteration of an entry under section 82(1) of the Act. 2. The submission of Mr. Parekh, learned counsel for the appellant, is that the aforesaid case before the Full Bench was wrongly decided and, as the judgment under appeal follows the said decision of the Full Bench, that judgment is also erroneous and liable to be set aside. In our view, this contention must be negatived in view of the decision of this court rendered by a Bench of three learned judges in Municipal Corporation of City of Hubli v. Subha Rao Hanumantharao Prayag [1976] 3 SCR 883. A perusal of the said decision makes it clear that this court took the view that the scheme of the relevant provisions of the Bombay Municipal Boroughs Act, 1925, shows that the official year is the unit of time for the levy of property tax under that Act. It was further held that the expression " current official year " in the context in which it occurs in section 82, sub-section (3), clearly signifies the earliest day in the official year which is current when the amendment in the assessment list takes place and that expression refers only to the official year which is running at the time when the amendment is made by insertion or alteration of an entry under sub-section (1) of section 82. Thereafter this court goes on to point out as follows at p. 1403 of AIR 1976 SC" It would, therefore, seem clear, on a combined reading of sub-sections (1) and (3) of section 82, that an amendment, in order to be effective in levying tax for an official year, must be made during the currency of the official year. That is now well-settled as a result of several decisions of the Bombay High Court culminating in the Full Bench decision in Sholapur Municipal Corporation v. Ramchandra Ramappa Madgundi [1972] 74 Bom LR 469 and we do not see any reason to take a different view. " 3. The aforesaid statement, in the judgment of this court, clearly shows that the decision of the Full Bench of the Bombay High Court in Sholapur Municipal Corporation v. Ramchandra Ramappa Madgundi [1972] 74 Bom LR 469, was approved by this court. The decision of the aforesaid Bench of this court is binding on us and is clearly applicable to the case before us. In that judgment, this court pointed out that once it was accepted that the process of levying the tax is complete only when the assessment list is authenticated and it is only then that the tax is levied on the rate-payers, it is difficult to resist the conclusion that the authentication must be made within the official year. The tax, being a tax for the official year, must obviously be levied during the official year and since the levy of the tax is complete only when the assessment list is authenticated, it must follow that the authentication must take place in the official year. 4. Mr. Parekh urged, although not with much conviction, that the decision of this court in the case of Municipal Corporation of City of Hubli v. Subha Rao Hanumantharao Prayag [1976] 3 SCR 883 can be distinguished because in that case there was no question of any additional construction or new construction being detected. In our view, it is not possible to make any such distinction. The question which arose before the court was whether an assessment list which was finalised and authenticated on July 24, 1952, after the expiry of the official year 1951-52 on March 31, 1952, could be regarded as a good or valid assessment list for the official year 1951-52. The entire scheme of the provisions pertaining to the preparation of the assessment list and the levy of property tax under the Bombay Municipal Boroughs Act, which is materially similar to the scheme under the said Act, was considered and the aforesaid conclusions were arrived at. There is no substance in the contention that the said decision can be distinguished. Moreover, with respect, we see no reason to take a view different from the one taken in the aforesaid case. The official year is the unit of taxation as far as municipal property taxes are concerned and, if the contention of Mr. Parekh is accepted, the result would be that an assessment list could be altered at any time if the conditions set out in section 123 of the said Act are satisfied, with the result that there would be complete uncertainty in the field of taxation of property and unwary purchasers of immovable property might be put to the difficulty of having to discharge the liabilities for property taxes for years long prior to the time when they purchased the immovable property in order to save the property from being sold in recovery proceedings. 5.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]The aforesaid statement, in the judgment of this court, clearly shows that the decision of the Full Bench of the Bombay High Court in Sholapur Municipal Corporation v. Ramchandra Ramappa Madgundi [1972] 74 Bom LR 469, was approved by this court. The decision of the aforesaid Bench of this court is binding on us and is clearly applicable to the case before us. In that judgment, this court pointed out that once it was accepted that the process of levying the tax is complete only when the assessment list is authenticated and it is only then that the tax is levied on the rate-payers, it is difficult to resist the conclusion that the authentication must be made within the official year. The tax, being a tax for the official year, must obviously be levied during the official year and since the levy of the tax is complete only when the assessment list is authenticated, it must follow that the authentication must take place in the official yearThe aforesaid statement, in the judgment of this court, clearly shows that the decision of the Full Bench of the Bombay High Court in Sholapur Municipal Corporation v. Ramchandra Ramappa Madgundi [1972] 74 Bom LR 469, was approved by this court. The decision of the aforesaid Bench of this court is binding on us and is clearly applicable to the case before us. In that judgment, this court pointed out that once it was accepted that the process of levying the tax is complete only when the assessment list is authenticated and it is only then that the tax is levied on the rate-payers, it is difficult to resist the conclusion that the authentication must be made within the official year. The tax, being a tax for the official year, must obviously be levied during the official year and since the levy of the tax is complete only when the assessment list is authenticated, it must follow that the authentication must take place in the official yearThe entire scheme of the provisions pertaining to the preparation of the assessment list and the levy of property tax under the Bombay Municipal Boroughs Act, which is materially similar to the scheme under the said Act, was considered and the aforesaid conclusions were arrived at. There is no substance in the contention that the said decision can be distinguished. Moreover, with respect, we see no reason to take a view different from the one taken in the aforesaid case. The official year is the unit of taxation as far as municipal property taxes are concerned and, if the contention of Mr. Parekh is accepted, the result would be that an assessment list could be altered at any time if the conditions set out in section 123 of the said Act are satisfied, with the result that there would be complete uncertainty in the field of taxation of property and unwary purchasers of immovable property might be put to the difficulty of having to discharge the liabilities for property taxes for years long prior to the time when they purchased the immovable property in order to save the property from being sold in recovery proceedings.