Payment of Property Tax cannot be Assessed on basis of Non-use or Close condition of Property u/s 140 of GPMC Act: Gujarat HC [Read Order]

In a recent case, the Ahmedabad bench of the Gujarat High Court held that the payment of property tax cannot be assessed based on the non-use or close condition of the property under section 140 of the Gujarat Provincial Municipal Corporation Act, 1949. 

Ahmedabad Sunni Muslim Waqf Committee, the appellant assessee challenging the action of the respondent authority of charging valuation concerning the properties belonging to the assessee. 

MTM Hakim, the counsel for the assessee contended that the premises were given on rent to the respective tenants and premises were in dilapidated condition for which notices were given to vacate the premises. 

It was further submitted that for almost 20 years and more, premises remained unutilized and therefore, these properties cannot be even assessed in a regular form. 

Further stated that the increased valuation was applied to a property which was practically not possible to be used, same would result into not only hardship to the assessee but would also result into injustice to the assessee and are liable to be deleted. 

Jirga D. Jhaveri, the counsel for the respondent relied on the decisions made by the lower authorities and contended that section 140 of the Gujarat Provincial Municipal Corporation Act was stipulating liability upon the occupier for payment of property tax and as such Statute has sufficiently couched the Corporation with power to assess tax and when tenant occupied the premises, premises cannot be assessed based on its non-use or close condition. 

The Court observed that there was no fault on the part of the Corporation in arriving at any valuation and the present appeal lacks merit to decide by the court. 

The two-member bench comprising Ashutosh Shastri and Divyesh A. Joshi held that this was not a fit case in which to exercise the appellate jurisdiction and it contained no irregularity, illegality, or perversity in any form while dismissing the appeal filed by the assessee. 

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