Common Law

  1.  I am excited to share an Ordinary, yet an extra-Ordinary ruling of Bombay High Court, which in my view, would may become a Template, in the dispensation of Justice. 2.  The Petitioners were in Writ Jurisdiction. The issue before the Court was inherently complex the property tax Assessment. There were cluster of facts, allegations and counter allegations. The easiest approach of the Court would have been to relegate the Petitioners to Statutory Appeal provided under the MMC Act, 1888. 3.  The Hon’ble Court didn’t. It took upon the pains to decide the issue, despite the fact that Appeal was already preferred and pending before the Hon’ble Small Causes Courts. 4.  Observations of the Hon’ble Court:   The assessing authority held that land under construction cannot be treated as vacant land. Though the issue whether the land under construction can be treated as vacant land is subject matter of appeal pending before the Small Causes Court ...

1.  In Mumbai, the Year 2013 marks the dawn of property taxes being imposed, retrospectively from the year 01.04.2010, on the basis of Capital Value of the concerned property as against the earlier practice of taxation based on Rateable Value of the property. This change of regime resulted in significant increase in property tax liability of the property owners. The said change of regime was under challenge before Hon’ble Bombay High Court. 2.  The main objects of introducing / shifting to the capital value system was to remove the disparities in tax liabilities between old and new properties / buildings. 3.  However, it appears that after introduction of this new regime, the disparities in tax liabilities between old and new properties / buildings have increased multi fold, as the new properties (occupied and assessed post 2010) are being taxed without having any reference to old method of taxation, and the benefit of capping of tax provided u/s 140A are not ...

The subject of taxation is a “Rocket Science”. The constitution of Nine Judges Bench in the Mafatlal Industries Case, Reported in (1997) 5 SCC 536, running into more than 500 pages; the extremely contested Vodafone litigation; and the present Judgment of Bombay High Court running into 310 Pages, at least furnishes some justification to this statement of Rocket Science. There are umpteen Judgments, some of which are relied herein also (Para 147), that whilst dealing with challenge to Taxation laws, greater latitude is shown by Constitutional Courts, only for the reason that Taxation / Economic Legislation, by their very nature, are very complex. And hold on, the Regime of Property Tax based on Capital Value of the Property, was brought in force, on the recommendations of Tata Institute of “Social Sciences”. (Para 33 of the Judgment) Did these Social Scientist, nevertheless very respectable, would appreciate an Inch of what was discussed in 310 Pages of Judgment, even assuming t...