Fresh Assessment on Increased Plinth Area Justified u/s 5(4) of Kerala Building Tax Act: Kerala HC Dismisses Challenge to Demand [Read Order]

The Court found that the petitioner’s own pleading and documents admitted that they had carried out additional constructions after the initial assessment.

The Kerala High Court has upheld a fresh assessment and demand for building tax and ruled that an increase in a building's plinth area due to subsequent construction correctly triggers a re-computation of the tax based on the total area, as mandated by Section 5(4) of the Kerala Building Tax Act, 1975.

P.T. Vincent and Celine Vincent (petitioners), joint owners of a building in Thodupuzha Village, Idukki District, initially obtained a permit for a building with a plinth area of 3641.32 square meters.

The Petitioners completed the building with a plinth area of 2332.42 square meters. This initial construction was assessed for tax under the Kerala Building Tax Act, 1975, and the petitioners paid an amount of ₹3,92,400. The petitioners later carried out further constructions in the building.

As of the time of the petition, the total plinth area had increased to 3580.19 square meters. The 3rd respondent (The Tahsildar, Thodupuzha Taluk) made a further assessment via Exhibit P6 and directed the petitioners to pay an additional amount of tax. The petitioners challenged this fresh assessment by filing a writ petition.

The bench of Justice Ziyad Rahman A.A. dismissed the writ petition and found that the challenge to the assessment was not maintainable.

The court observed that the situation is governed by Section 5(4) of the Kerala Building Tax Act, 1975, which stipulates:

"when the plinth area of a building is subsequently increased by new extensions, major repairs, or improvements after its initial completion, building tax shall be computed on the total plinth area of the building including that of the new extension or repair or improvement and credit shall be given to the tax already levied and collected".

The Court found that the petitioners' own pleading and documents admitted that they had carried out additional constructions after the initial assessment. Since the additional construction was an admitted position, nothing precluded the 3rd respondent from making a fresh assessment based on the total plinth area.

The court also noted that the new assessment (Ext.P6) had already given due credit for the amount of tax initially remitted by the petitioners. The Court concluded there was no justifiable ground to entertain the writ petition, as the fresh assessment was a necessary consequence of the statutory stipulations contained in Section 5(4) of the Kerala Building Tax Act, 1975. The writ petition was consequently dismissed.