HARBANSLAL MALHOTRA & SONS PVT. LTD. versus KOLKATA MUNICIPAL CORPN. & ANR.
[2017] 11 S.C.R. 526, Supreme Court of India, 2017
Outcome: Appeal(s) allowed (Granted)
Segment: Ratio
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[20 l 7] 11 S.C.R. 526 
HARBANSLAL MALHOTRA & SONS PVT. LTD. 
v. 
KOLKATA MUNICIPAL CORPN. & ANR. 
(Civil Appeal No. 3337 of2007) 
SEPTEMBER 05, 2017 
[R. K. AGRAWAL AND ABHAY MANOHAR SAPRE, JJ.J 
Calc1111a A111nicipol Co1yJoration Act, 1980 - ss.174 and 178 
Tax on the premises - Annual valuation - Derermination of -
AJJpella11t is the 01v11er of' the pre111ises. c:unsisting of ra·a-storey 
building and some land appurtenant there10 - Assessing Officer 
determined the annual rn/ue of the premises, for the assessment 
year (1988-89) (3"' quarrer} as Rs.59.4001- and for the assessment 
year (1994-95) (3"' quarter) as Rs.4.25,61101- - Aggrieved. appellant 
(assessee} filed appeals before Tribunal. which upheld the valuation 
of Rs.59,4001-, however, reduced the annual i•aluation of 
Rs. 4, 2 5, 6001- to Rs. 7 5. 4001-
in accordance with procedure 
prescrihed in s.174(1) - High Court held that t/1e Tribunal was not 
right in making an assessment of the premises by clubbing land and 
building, it should have been done separately }or determining their 
respective annual value uls. 174(1) and (2) of the Act - On appeal. 
held: s.174 deals with two types of assessment .for determining the 
annual value of land or building - One is in relation to the "land 
on which the building is built", it is govemed by sub-section(/} of 
s.174 and the other is in relation to the "open land", i.e .. the "land 
on which no building is built", it is govemed by suh-section
(2) of 
s.174 - In case of s.174(1), the assessing authority is required to 
take land and building as "single unit" for determination of its 
gruss annual rent lVhich is reaso11ablJ 1 expecteli tu /'etch at the ti111e 
<Jl assessmellt fi'o11' year ro year - It is also clear fi'om s.l 7S(2)(i) 
and (ii}, which provides that every huilding together with the site 
and the land appurtenant therero shall be assessed as a "single 
unit" -- s.174(/) and (2) operare in separate field. bolh cannot be 
cluhhed jor determination of the gross annual remal value of land 
or building - When legislature itself has carved out two categories 
(}(cases namely, (I} "land or !wilding" (2) "open land with no 
building thereoll" and has accordingly provided different rates and 
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HARBANSLAL MALHOTRA & SONS PVT. LTD. v. KOLKATA 
527 
MUNICIPAL CORPN. 
different method< of assessment, it does not appear logical to club 
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both the categories of cases - Tribunal followed proper procedure 
by applying s.174(1) jiJr determining the gross annual value - Order 
of the Tribunal restored. 
Interpretation of Statutes - Tax Laws - Held: It is a settled 
rule of interpretation in relation to tax laws that a machinery B 
provision which enables the assessee to avail of a concession or 
benefit conferred by substantive provision in the Act, such provisions 
are required to be constn1ed liberal~v. 
Allowing the appeal, the Court 
HELD: I.I Reading of Section 174 of the Calcutta Municipal 
Corporation Act, 1980 shows that it deals with two types of 
assessment for determining the annual value of land or building. 
One is in relation to the "land on which the building is built" and 
the other is in relation to the "open land", i.e., the "land on which 
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no building is built". So far as former is concerned, i.e., land on D 
which building is built, it is governed by sub-section (1) of Section 
174 whereas so far as the latter is concerned, i.e., open land on 
which no building is built, it is governed by sub-section (2) of 
Section 174. [Para 13][536-G] 
1.2 In the case of former, the assessing authority is required 
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to take land and building as "single unit" for determination of its 
gross annual rent which is reasonably expected to fetch at the 
time of
assessment from year to year. To illustrate, if the building 
has some appurtenant land which is exclusively used by the owner 
for garden or/and parking the vehicles, such building or/and land 
may fetch more rentals as compared to a building, which docs· F 
not have these facilities or has very small land appnrtenant to 
the building. In any case, such building and the land cannot be 
separated for determining their gross annual rent. Such case, 
therefore, would fall in sub-section (I) of Section 174. The annual 
value and gross annual rent of such premises have to be, 
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therefore, determined as per the procedure prescribed in sub-
section (1) of Section 174 of the Act. [Para 14](536-H; 537-A-B] 
1.3 The proviso to sub-section(!) of Section 174, deals 
with the cases of "transfer" of the building and land. In such 
case, the Assessing Officer is required to take the amount (sale 
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[2017] II S.C.R. 
A consideration) mentioned in the transfer deed as the basis for 
determining its annual value and then to determine the gross 
annual rem of such premises as per the procedure prescribed in 
sub-section(!) of Section 174 of the Act. [Para 15][537-C-Dj 
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l.4 However, in a case where no amount is mentioned in 
the transfer deed, the proviso says that the Assessing Officer is 
required to take the estimated market value of such premises as 
the basis and then to determine its gross annual rental as per the 
procedure prescribed in sub-section(!) of Section 174 of the Act. 
[Para 1611537-E] 
1.5 In a situation, where the gross annual rent of any land 
or building or any part thereof cannot be easily estimated for the 
purpose of sub-section(!) of Section 174, then a procedure is 
prescribed in sub-section(4A) of Section 174 as to how gross 
annual rent of such land or building is to be determined. [Para 
171[537-FJ 
1.6 In all the situations set out above, the land or the 
building or any part thereof would be taken as "single unit" and 
not separate for determining the gross annual rental value. It is 
also clear from Section 178(2)(i) and (ii), which provides that every 
building together with the site and the land appurtenant thereto 
shall be assessed as a "single unit". [Para 181[537-G) 
I. 7 However, the three provisos appended to clause(i) of 
Section 178 (2) also relates to building and the land but with
different class of cases due to building's peculiar structure, its 
ownership and the manner in which such building or land is used 
by the owner. [Para 19][537-H] 
1.8 If the factors set out in any of the three provisos were 
found present in any building or land, the assessment of such 
building and land has to be done as per the procedure prescribed 
in the provisos read with Section 174(1) of the Act. [Para 20][538-
A) 
1.9 
Now coming to the later category of the cases, i.e., 
"open land" or "land on which no building is built", it falls in sub-
section(2) of Section 174. It says that the annual market value of 
"open land" would be fixed at seven percent of tht estimated 
market value of the open land. [Para 211J538-B]
HARBANSLAL MALHOTRA & SONS PVT. LTD. v. KOLKATA 
529 
MUNICIPAL CORPN. 
2.1 Section 174(1) and (2), therefore, operate in separate A 
field. Both cannot be clubbed for determination of the gross 
annual rental value of land or building. In other words, both the 
Sections have to be applied independently depending upon the 
fact as to whether the premises is "building with land" or it is an 
"open land" and accordingly their gross annual rental value would 
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be determined. [Para 22][538-C-DI 
2.2 When the Legislature itself has carved out two 
categories of cases namely, (1) "'land or building" (2) "open land 
with no building thereon" and has accordingly provided different 
rates and different methods of assessment, it docs not appear 
logical to club both the categories of cases. [Para 23][538-E] 
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3. It is a settled rule of interpretation in relation to taxing 
laws that a machinery provision which enables the assessec to 
avail of a concession or benefit conferred by substantive provision 
in the Act, such provisions arc required to be construed liberally. 
This rule applies to the case on hand and hence, benefit of the D 
interpretation must go to the assessee rather than to the taxing 
man. It also serves the purpose for which Section 174 is enacted. 
[Para 24][538-E-F] 
Principles of Interpretation of Stat11to1y Interpretatio11 
by G P Singh 13" Edition - referred to. 
4. The Tribunal followed proper procedure by applying 
Section 174(1) for dl'lermining the gross
annual value. The 
Tribunal's order, therefore, deserves to be· restored. [Para 
2611539-A) 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 3337 
of2007. 
From the final Judgment and Orders dated 28.06.2004 and 
17.08.2005 passed by the Kolkata High Court in C.O. No.368 of2004 
and in Review Application No.2963 of2004 respectively. 
Amit Sibal, Sr. Adv., Aakash Bajaj, Namit Suri, Rahul Kumar, 
Sanjecv Kapoor(for Mis Khaitan & Co.) Advs. for the Appellant. 
L.C. Agrawala, Adv. for the Respondents. 
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SUPREME COURT REPORTS 
(2017] 11 S.C.R 
The Judgment of the Cow1 was delivered by 
ABHAY MANO HAR SAP RE, J. I. This appeal is filed against 
the final judgment and orders elated 28.06.2004 passed by the High Comt 
of Kolkata in C.O. No.368 of 2004 whereby the Single Judge of the 
High Court allowed the revision filed by the respondents herein, set aside 
the judgment/order dared 18.11.2002 passed by the Mwueipal Assessment 
Tribunal (hereinafter referred to as '"the Tribunal"). Kolkata in M.A.A. 
No.170 I of 1996 and remanded the case to the Tribunal to re-determine 
the annual value of the premises and also against an order dated 
17.08.2005 passed in Review Application being Review Application No. 
2963 of 2004 in C.0. No.368 of 2004 arising out of order dated 
28.06.2004 passed in C.O. No.368 of2004. 
2. The issue involved in the appeal lies in narrow compass. 
However, in order to appreciate the shun controversy. few relevant facts 
need mention infra. 
3. The appellant is the owner of the premises bearing No. 226/2 
situated at A.J.C. Bose Road, Kolkata- 700020. It consists of two-
storey building and some land appurtenant thereto (hereinafter referred 
to as "the premises"). This premises is assessed to payment of tax under 
the provisions of the Calcutta Municipal Corporation Act, 1980 
(hereinafter referred to as "the Act'"). 
4. The question arose while making assessment of the premises 
for the Assessment Years 1988-89 (3rd quarter)
and 1994-95 (3rd quarter) 
before the Assessing Authority (Hearing Officer), as to whar is the proper 
annual value of the premises and secondly, how it should be determined 
under Section 174 of the Act for payment of tax on the premises. 
5. By two orders dated 22.06.1996, the Assessing Officer (Hearing 
Officer) determined the valuation of the premises. So far as annual 
valuation for the Assessment Year ( 1988-89) (3'" quarter) is concerned, 
it was done at Rs.59,400/-, whereas so far as it was for the Assessment 
Year (1994-95) (3'" quarter) is concerned, the same was done at 
Rs.4,25,600/-. 
6. The appellants (asscsscc), felt aggrieved of the orders of 
Assessing Officer, filed two appeals before the Tribunal. So far as the 
order pertaining to the period ( 1988-89), valuing the premises at Rs.59,400/ 
- was concerned. the appellant filed appeal being M.A.A. No. 1702 of 
1996 whereas so far as the order relating to period ( 1994-95 ), valuing 
the premises at Rs.4,25,600/-was concerned. the appellant filed appeal 
being M.A.A. 170 I of 1996.
HARBANSLAL MALHOTRA & SONS PVT. LTD. v. KOLKATA 
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MUNICIPAL CORPN. [ABBAY MANOHAR SAPRE, J.] 
7. Both the appeals were heard analogously by the Tribunal and 
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were disposed of by common order dated 18.11.2002. So faras M.A.A. 
No. 1702/96 is concerned. it was dismissed by upholding the valuation 
whereas M.A.A. No. 1701/96, was allowed in pmt wherein the Tribunal 
reduced the annual valuation made by the Assessing Officer. from 
Rs.4,25.000/- to Rs.75,4001-. The Tribunal held that the annual valuation 
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of the premises which was made at Rs.4,25,000/- by the Assessing 
Authority was wrong and should have been done at Rs.75,400/- in 
accordance with the procedure prescribed in Section 174 ( 1 ). 
8. The Municipal Corporation. felt aggrieved of the order of the 
Tribunal, filed revision petition before the High Court. By impugned order, 
the High Court allowed the revision and remanded the case to the Tribunal 
to re-determine the annual value of the premises. The High Comt held 
that the Tribunal was not right in making an assessment of the premises 
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by clubbing land and building. According to the High Court, it should 
have been done separately, i.e., building and land should have been 
assessed separately for determining their respective annual value under 
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Section 174(1) and (2) of the Act. 
9. The owner (asscsscc), felt aggrieved of the order of the High 
Court, filed this appeal by way of special leave before this Court. 
I 0. Heard Mr. Amit Sibal, learned
senior counsel for the appellants 
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and Mr. L.C. Agrawala, learned counsel for the respondents. 
11. Having heard the learned counsel for the parties and on perusal 
of lhe record of the case, we arc inclined to allow the appeal, set aside 
the impugned order and restore that ofthc Tribunal. 
12. Part-IV of the Act deals with the subject of "Taxation". 
Chapter-XII therein deals with the powers ofTaxation and Consolidated 
Rates. Clause C provides the method as to how the determination of 
Annual Valuation of any land or/and building is done. Sections 174 and 
178 of the Act arc relevant for the disposal of the appeal. They need 
mention infra: 
Section 174 
"174. Determination of annual valuation -
(1) 
Notwithstanding anything contained in the West Bengal 
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premises Tenancy Act, 1956 (West Ben. Act XII of 1956) 
or in any other law for the time being in force, for the 
purpose of assessment to the consolidated rate, the annual 
value of any land or building shall be deemed to be the 
gross annual rent including service charges, if any, at which 
such land or building might at the time of assessment be 
reasonably expected to let from year to year, less an 
allowance of ten per cent, for the cost of repairs and other 
expenses necessary to maintain such land or building in a 
state to command such gross rent: 
Provided that where thl,re is a transfer, inter vivos, of 
ownership of any land or building since the last preceding 
periodical assessment under Section 179, the annual value 
of such land or building shall be fixed at seven and a half 
per cent of the amount stated in the deed of transfer as 
consideration for such transfer or, if no consideration is 
stated in such deed of transfer, at seven and a half per cent 
of the estimated market value thereof: 
Provided further that while determining the annual value 
in the case of any land ur building or portion thereof 
exclusively used by the owner for his residential purpose, 
the gross annual rent of such land or building or portion, as 
the case may be, shall be reduced, -
{a) where the gross annual rent docs not exceed six hundred 
rupees, by thirty per cent; 
(b) where the gross annual rent exceeds
six hundred rupees 
but docs not exceed eighteen thousand rupees, but such 
percentage of the gross annual rent as is worked out by 
dividing the gross annual rent by six hundred and 
subtracting the quotient from thirty-one, the difference 
being rounded off to the nearest place of decimal: 
Provided also that no such reduction in gross annual rent 
shall be madc--
(a) in case the total covered area in any land or building 
under occupation for residential purpose by the owner 
exceeds one hundred and fifty square metres, or
HARBANSLAL MALHOTRA & SONS PVT. LTD. v. KOLKATA 
MUNICIPAL CORPN. [ABHAY MANOHAR SAPRE, J.] 
{b) where a person owns or occupies for residential purpose 
more than one plot of land or building or portions thereof 
within the municipal limit of Calcutta. 
(2) The annual value of any land which is not built upon 
shall be fixed at seven per cent of the estimated market 
value of the land. 
(3) If the gross annual rent of any class or classes of land or 
buildings used exclusively for hospital or educational 
purposes or for the purposes of sports or as a place of 
worship or as a place for disposal of the dead cannot be 
easily estimated, the gross annual rent of such building shall 
be deemed to be five per cent of the value of the building 
obtained by adding the estimated cost of erecting the 
building at the time of assessment less a reasonable amount 
to be deducted on account of depreciation, if any, to the 
estimated present market value of the land valued with the 
building as part of the same premises. 
(4) In the case of any land or building or part thereof used 
for public cinema shows or theatrical performances or as a 
place of similar public recreation, amusement or 
entertainment, the gross annual rent of such land or building 
or part thereof, as the case may be, shall be deemed to be 
seven and a half per cent of the gross annual receipts in 
respect of such cinema shows or theatrical performances 
or place of public recreation, amusement or entertainment,
including receipts from rent and advertisements and sale 
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of admission tickets but excluding taxes on the same of F 
such tickets: 
Provided that the provisions of this sub-section shall not 
apply in the case of temporary fairs, circuses, and casual 
shows or performances. 
{4A) If the gross annual rent of any land or building or part 
thereof cannot be easily estimated, the gross annual rent 
of such land or building for the purposes of sub-section {I) 
shall be deemed to be seven and half per cent of the value 
of the building obtained by adding the estimated present 
cost of erecting the building at the time of assessment less 
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a reasonable amount to be deducted on account of 
depreciation, if any, to the estimated present market value 
of the hind: 
Provided that the estimated present cost shall not include 
the cost of any plant or machinery, excepting those 
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enumerated in Schedule VIII, on the land or the building 
as aforesaid. 
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{S) The annual value as determined under this Chapter shall 
be rounded off to the nearest ten rupees." 
Section 178 
178. Municipal Assessment Code-{l) The State 
Government may by rules provide for the detailed 
procedure for determination of the annual value of lands or 
buildings in Culcutta and for other matters connected 
therewith and such rules together with any regulations made 
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under this Act shall constitute the Municipal Assessment 
Code. 
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(2) Under the rules as aforesaid-
(i) every building together with the site and the land 
appurtenant thereto shall be assessed as a single unit: 
Provided that where portions of any building together with 
the site and the land appurtenant thereto arc vertically 
divisible and arc separately owned so as to be entirely 
independent and capable of separate enjoyment 
notwithstanding the fact the access to such separate portions 
is made through a common passage or a common staircase, 
such separately owned portions may be assessed 
separately: 
Provided further that the right of such access is protected 
by a registered deed of agreement: 
{ii) all lands
and buildings to the extent these arc contiguous 
or arc within the same cartilage or arc on the same 
foundation and arc owned by the same owner or co-owners 
as an undivided property, shall be treated as one unit for 
the purpose of assessment under this Act:
HARBANSLAL MALHOTRA & SONS PVT. LTD. v. KOLKATA 
535 
MUNICIPAL CORPN. [ABBAY MANOHAR SAPRE. J.] 
Provided that if such land or building is sub-divided into A 
separate shares which arc not entirely independent and 
capable of separate enjoyment, the Municipal 
Commissioner on application from the owners or co-owners 
may apportion the valuation and assessment among the co-
owners according to the value of their respective shares 
treating the entire land or building as a single unit: 
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(iii) each residential unit with its percentage of the 
undivided interest in the common areas and facilities 
constructed or purchased and owned by or under the control 
of any housing co-operative society registered under the 
West Bengal Co-operative Societies Act, 1973 (West Ben. 
Act XXXVIII of 1973), shall be assessed separately: 
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(iv) each apartment and its percentage of the undivided 
interest in the common areas and the facilities in a building 
within the meaning of the West Bengal Apartment 
Ownership Act, 1972 (West Ben. Act XVI of 1972), a 
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declaration in respect of which has been duly executed and 
registered under the provisions of that Act, shall be 
assessed separately: 
(v) every land comprised in a thika tenancy with hut or 
building made thereon, either in a bustee or othenvise, shall 
be assessed separately as a single unit: 
(vi) every land, which is not build upon, comprised in a lhika 
tenancy, either in a bustcc or otherwise shall be assessed 
separately as a
single unit. 
(3) Notwithstanding the assessment made before the 
commencement of this Act, the Municipal Commissioner 
on his own may amalgamate or separate or continue to 
assess as such, as the case may be, lands or buildings or 
portions thereof so as to ensure conformity with the 
provisions of this section. 
(4) If the ownership of any land or building or a portion 
thereof is sub-divided into separate shares or if more than 
one land or building or portions thereof by amalgamation 
come under one ownership, the Municipal Commissioner 
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may on an application from the owners or co-owners, 
separate or amalgamate, as the case may be, such lands or 
buildings or portions thereof so as to ensure conformity 
with the provisions of this section. 
(5) A newly constructed building shall become assessable 
from the quarter following the date of issue of the occupancy 
certificate under the provisions of this Act: 
Provided that is such building is occupied before the issue 
of the occupancy certificate in contravention of the 
provisions of this Act, such building shall be liable for 
assessment from the quarter following the date of its 
occupation and notwithstanding any other action that may 
be taken under this Act, such building shall not get the 
benefit of the rebate in the consolidate rate under sub-
section(S) of section 171. 
(6) The Municipal Commissioner shall, upon an application 
made in this behalf by an owner, lessee or sub-lessee or 
occupier of any land or building and upon payment of such 
fees as may he determined by the Corporation by 
regulations, furnish information to such person regarding 
the appointment of the consolidated rate of such land or 
building among the several occupiers within such land or 
building for the current period or the period immediately 
preceding: 
Provided that nothing in this sub-section shall prevent 
the Corporation from recovering the dues form any such 
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person." 
13. Reading of Section 174 shows
that it deals with two types of 
assessment for determining the annual value ofland or building. One is. 
in relation to the "land on which the building is built'" and the other is in 
relation to the .. open land'', i.e., the "land on which no building is built". 
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So far as former is concerned, i.e .. land on which building is built, it is 
governed by sub-section (I) of Section 174 whereas so far as the latter 
is concerned, i.e., open land on which no building is built, it is governed 
by sub-section (2) of Section 174, 
14. Jn the case of former, the assessing authority is required to 
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HARBANSLAL MALHOTRA & SONS PVT. LTD. v. KOLKATA 
MUNICIPAL CORPN. (ABHAY MANOHAR SAPRE, J.) 
take land and building as "'single unit" for determination ofits gross annual 
rent \Vhich is reasonably expected to fetch at the time of assessment 
from year to year. To ill ustratc. if the building has some appurtenant land 
which is exclusively used by the owner for garden or/and parking the 
vehicle~. such building or/and land may fetch more rentals as compared 
to a building. which does not have these facilities or has very small land 
appurtenant to the building. In any case. such building and the land cannot 
be separated for determining their gross annual rent. Such case, 
therefore. would fall in sub-section (I) of Section l 74. The annual value 
and gross annual rent of such premises have to be, therefore, determined 
as per the procedure prescribed in sub-section (I) of Section 174 of the 
Act. 
15. The proviso to sub-section(!) of Section 174, deals with the 
cases of"tmnsfcr" of the building and land. In such case, the Assessing 
Officer is required to take the amount (sale consideration) mentioned in 
the transfer deed as the basis for determining its annual value and then 
to determine the gross annual rent of such premises as per the procedure 
prescribed in sub-section( l ) of Section I 7 4 of the Act. 
16. However, in a case where no amount is mentioned in the 
transfer deed. the proviso says that the Assessing Officer is required to 
take the estimated market
value of such premises as the basis and then 
to determine its gross annual rental as per the procedure prescribed in 
sub-section( 1) of Section 174 of the Act. 
17. In a situation, where the gross annual rent of any land or 
building or any part thereof cannot be easily estimated for the purpose 
of sub-section( I) of Section 174, then a procedure is prescribed in sub-
section( 4A) of Section 174 as to how gross ruumal rent of such land or 
building is to be determined. 
I 8. In all the situations set out above, the land or the building or 
any part thereof would be taken as "single unit" and not separate for 
determining the gross annual rental value. It is also clear from Section 
l 78(2)(i) and (ii), which provides that every building together with the 
site and the land appurtenant thereto shall be assessed as a "single unit". 
19. However, the three provisos appended to clause(i) of Section 
178 (2) also relates to building and the land but with different class of 
cases due to building's peculiar structure. its ownership and the manner 
in which such building or land is used by the owner. 
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20. If the factors set out in any of the three provisos were found 
present in any buikling or land, the assessment of such building and land 
has to be done as per the procedure prescribed in the provisos read with 
Section 174( I ) of the Act. 
21. 
Now coming to the later category of the cases. i.e., "open 
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land" or "land on which no building is built". it falls in sub-section(2) of 
Section 174. It says that the annual market value of"open land" would 
be fixed at seven percent of the estimated market value of the open 
land. 
22. We arc, therefore, of the considered opinion that Section 174(1) 
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and (2) operate in separate field. Both cannot be clubbed for 
determination of the gross annual rental value of land or building. In 
other word~. both the Sections have to be applied independently depending 
upon the fact as to whether the premises is "building with land" or it is 
an "open land" and accordingly their gross annual rental value would be 
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ddermined. 
23. When the Legislattu-e itself has carved out two categories of 
cases namely, (l) "land or building" (2) "open land with no building 
thereon" and has accordingly provided different rates and different 
methods of assessment, it docs not appear logical to club both the 
categories of cases. 
24. It is a settled rule of interpretation in relation to taxing laws 
that a machinery provision which enables the assessee to avail of a 
concession or
benefit conferred by substantive provision in the Act, such 
provisions are required to be construed libernlly. (See GP Singh-Principles 
oflntcrpretation of Statutory Interpretation 13'" Edition page 856). This 
rule applies to the case on hand and hence, benefit of the interpretation 
must go to the assessec rather than to the taxing man. It also serves the 
purpose for which Section l 74 is enacted. 
25. Coming now to the facts of the case, we find that the High 
Court while remanding the case directed the Tribunal to treat land and 
building of the premises as separate unit and then to determine the gross 
annual value of the premises by applying Section 174 ( 1) and (2) of the 
Act. 
26. The view taken by the High Court does not command its 
acceptance to us in the light of what we have held above. We, however,

HARBANSLAL MALHOTRA & SONS PVT. LTD. v. KOLKATA 
539 
MUNICIPAL CORPN. [ABBAY MANOHAR SAPRE, J.] 
find that the Tribunal followed proper procedure by applying Section 
A 
174(1) for determining the gross annual value. The Tribunal's order, 
therefore, deserves to be restored. 
27. In the result, the appeal succeed~ and is allowed. The impugned 
orders dated 28.06.2004 in C.O. No.368 of2004 and dated 17.08.2005 
in Review Application No. 2963 of2004 in C.O. No.368 of2004 are set 
B 
aside and the order of the Tribunal dated 18.11.2002 is restored. 
Ankit Gyan 
App!.!al allowed.