TMI Blog1981 (12) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... 26 of the Act for raising the rateable value to Rs. l,29,650.00 with effect from 1-4-1969. The grounds for revision stated in the notice were : ''(A)Previous rateable value was found to be erroneously valued; (b) Repairing and plastering of walls. After hearing the objections from the landlord, the revised retable value was finally fixed at ₹ 1,16,550.00 on 10-8-1970. The landlord preferred an appeal under Section 169 of the Act. He did not deposit any tax amount pursuant to Section 170(b). (3) In the appeal before the District Judge the landlord prayed that the question whether the property tax amount must be deposited before the appeal can be heard (or determined) or not should be referred to this court, being a question quite complex and fairly important. Accordingly the present reference was made. The Additional District Judge while referring the issue prima facie held that the appeal under Section 169 cannot be heard or determined till the amount of property tax due on the basis of enhanced rateable value under the impugned order was deposited. It may be mentioned here that the reference is limited only to the question of enhanced ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of any tax under this Act shall lie to the court of the district judge of Delhi. - 170. No appeal shall be heard or determined under Section 169 unless- (a) the appeal is, in the case of a property tax, brought within thirty days next after the date of authentication of the assessment list under Section 124 (exclusive of the time requisite for obtaining a copy of the relevant entries therein) or, as the case may be, within thirty days of the date on which an amendment is finally made under Section 126, and, in the case of any other tax, within thirty days next after the date of the receipt of the notice of assessment or of alteration of assessment or, if no notice has been given within thirty days after the date of the presentation of the first bill or, as the case may be, the first notice of demand in respect thereof: Provided that an appeal may be admitted after the expiration of the period prescribed Therefore by this Section if the appellant satisfies the court that he had sufficient cause for not preferring the appeal within that period : (b) the amount, if any, in dispute in the appeal has been deposited by the appellant in the office of the Corporation. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the C.P.C. can be made applicable to appeals. The procedure for suit can be followed in case of 'applications' or 'references' as mentioned in Section 457. I do not think that said Section is intended to exclude the applications of Order 41, Rule 5 to the appeal under Section 169. I would, Therefore, hold that the procedure, as prescribed by Order 41, is the only procedure applicable to appeals under Section 169. The next qualifying provision of Section 457 is the procedure laid down by Civil Procedure Code . being made applicable as far as it can be made applicable. Therefore, it is for the District Judge to decide how far the appeal procedure prescribed by G.P.C. can be made applicable. Naturally, the District Judge will have to consider the object and purpose of the Corporation Act, the scheme regarding taxation provisions, particularly the house-tax and the express provisions of the Corporation Act prescribing a different procedure. (8) Under Older 41, Rule 5 in a money decree the appellate court directs the deposit of the decretal amount. But it can, appropriate cases, direct giving of security in lieu of the deposit of decretal amount. On satis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the basis of the admitted rateable value of ₹ 88,500.00 or should he deposit the tax amount on the disputed increase in the rateable value of ₹ 28.050.00 or should he deposit the tax amount on the total rateable value (with increase) of ₹ 1,16,550.00? (10) Section 170(b) provides that unless the amount, if any, in dispute in the appeal has been deposited by the appellant in the office of the Corporation no appeal shall be heard or determined. The literal interpretation of the words, the amount in dispute in appeal would mean only the difference between the original amount and the increased amount, since the dispute is restricted to the increase in the rateable value. What is disputed in appeal is the difference by way of increase in the rateable value and, Therefore, the differential increase of the tax amount. In the present case it would mean that if the assessed deposits the tax amount on the basis of the difference or the disputed amount of the rateable value of ₹ 28,050.00 the District Court must hear and determine the appeal of the assessed. But this would lead to absurd results defeating the object of depositing the tax amount as a pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of Appellate Authority direct the appropriate sum to be deposited by the assessed before the appeal is heard. In a given case it may be proper to direct the deposit of an admitted amount. In another case, the interest of justice would be served by directing deposit of the disputed amount. The exercise of the discretion is necessary both in the interest of the assessed and the Corporation and to make Section 170 workable. (12) A similar view was taken by Andhra Pradesh High Court in Municipal Corporation of Hyderabad versus Tahera, Begum, 1975 Municipalities and Corporation Cases page 42. In an appeal, questioning the enhancement of property tax by the Municipal Corporation of Hyderabad, the Chief Judge, Small Causes Court, Hyderabad, granted interim stay of the collection of the enhanced tax pending disposal of the appeal. Section 282(2)(d) of the Hyderabad Municipal Act, 1955 provides that no appeal shall be heard unless the appellant has deposited the amount claimed with the Commissioner. The High Court held that provisions of Order 41 Rule 5, Civil Procedure Code . are attracted to such an appeal in spite of the provisions regarding the deposit under Section 282(2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /public safety, suppression of nuisance, the Corporation is obliged by Act to regulate trade and occupations and to undertake improvement, claims and re-housing schemes within the city. Delhi city is expanding and developing at a phenomenal rate. Huge financial resources are necessary for meeting these civic obligations. The taxation resources of the Corporation, for raising the needed finances, are very limited. They are laid down by Section 113 of the Act. Property tax forms a very large chunk of the tax resources of the Corporation. The fact that Municipal Administrations in India are stifled in their activities due to large scale-arrears of the payment of house-tax, cannot also be ignored . At the same time, the District Court must consider whether the order of deposit will cause substantial loss or extreme hardship to a tax payer. The second part of the question is answered as follows: Appeal under Section 169 cannot be heard or determined unless the amount, as directed by the District Judge, is deposited by the appellant. The District Judge has a discretion to direct deposit of an admitted amount or disputed amount or a part of the total tax amount, with or without conditions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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