Law: Indian Companies Act, (I of 1956)

Section: 211

Law: Bombay Co-operative Societies Act (VIII of 1925)

Section: 73(1)

Income-tax-Municipality - Rate on buildings and lands --Capital basis-Contractor's method - Company-Balance-sheet-Figures whether relevant-Companies Act, 1956, S. 211, Sch. VI-- Bombay Municipal Boroughs Act, 1925, S. 73(1)-Godhara Municipal Rules, rr. 3, 4, 5. Where the rateable value of a building is to be determined for the purposes of a rate imposed by a municipality on the capital basis the capital value of the properties can be determined by adopting the contractor's method. (Contractor's method of determining capital value stated.) The figures given in the balance-sheets are merely statements in terms of the form given in Schedule VI to the Companies Act, 1956 : they have no relevance in determining the capital value of property for the purpose of assessment to a rate. Patel Gordhandas Hargovindas v. Municipal Commissioner, Ahmedabad (1964) 2 S C R 608 and R. v. School Board for London (1885) 55 L J M 33 ref. JUDGMENT MITTER, J.------These are two appeals by special leave against the judgment and order dated January 8, 1963, of the Gujarat High Court dismissing Civil Revision Applications Nos. 116 and 117 of 1961 filed by the appellant and allowing similar Applica tions Nos. 173 and 174 of 1961 filed by the respondent against the common judgment dated December 1, 1960, passed by the District and Sessions Judge of Panchmahals. The matter arises out of assessments made by the appellant constituted under the Bombay Municipal Boroughs Act, 1925, on the respondent under section 73 of the Act. The respondents are an electricity company owning, inter alia, properties bearing several numbers in the municipal borough of Godhara. For the years 1956-57 and 1957-58 the appellant had fixed the valuation of the properties belonging to the respondent at Rs. 3,25,000, On appeal by the respondent, the Judicial Magistrate fixed the valuation of the properties at Rs. 90,000. On the appellant going in revision, the Sessions Judge fixed the valuation at Rs. 1,25,000. As a result of the High Court's decision the valuation stood reduced to Rs. 90,000. The present appeals are by the municipality. Under section 73(1) of the Bombay Municipal Boroughs Act, 1925…