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1983 (4) TMI 50 - SC - Income TaxWhether there is fair correspondence between the fee charged and the cost of services rendered to the fee-payers as a class? Held that:- Apparently the High Court was under the impression that the fees collected should be shown to be related to expenditure incurred directly and exclusively in connection with the slaughtering of animals in its slaughter houses and also shown as such in the municipal budget. This was a wholly erroneous approach. The expenditure need not be incurred directly nor even primarily in connection with the special benefit or advantage conferred. We have also explained that there need not be any fastidious balancing of the cost of the services rendered with the fees collected. It appears to have been common ground before the High Court that the price of meat had gone up about 10 to 12 times since the rates were originally fixed. If so, one wonders how the Municipal Corporation could be expected to effectively discharge its obligations in connection with the supervision of the slaughtering of animals in the slaughter houses maintained by it by merely raising the rates two-fold and three-fold. The increase from 50 p. to ₹ 2 per animal in the case of small animals and from Re. 1 to ₹ 8 in the case of large animals appears, to us to be wholly justified in the circumstances of the case. The appeal is, therefore, allowed with costs, the judgment of the High Court set aside
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