1969 (4) TMI 28 - SUPREME COURT

Whether the Madras Urban Land Tax Act, 1966 (12 of 1966) is constitutionally valid?

Held that:- In pith and substance the new Act in imposing a tax on urban land at a percentage of the market value is entirely within the ambit of entry 49 of List II and within the competence of the State Legislature and does not in any way trench upon the field of legislation of entry 86 of List I.

The Act envisages a detailed procedure regarding submission of returns, the making of an assessment after hearing objections and a right to appeal to higher authorities. We are hence unable to accept the contention of the petitioners that the provisions of section 6 of the new Act are violative of article 14 of the Constitution. The imposition of the tax retrospectively from 1st July, 1963, cannot be said to be an unreasonable restriction. We, therefore, reject the argument of the petitioners on this aspect of the case. The Madras Urban Land Tax Act, 1966 (Act 12 of 1966), must be upheld as constitutionally valid. Appeal dismissed.