SC set aside rule levying Property Tax on Vacant land based on Development Potential

Municipal Corporation of Greater Mumbai & Ors. Vs Property Owners’ Association & Ors. (Supreme Court of India)

The CJI bench of Supreme Court in this case was dealing with the levy of property tax in Greater Mumbai which had been changed from ratable value to capital value system by virtue of amendments made to the Municipal Corporation Act. The capital value system effected several property owners particularly Indian Hotels Co Ltd  whose tax for a property went up from Rs 6.29 crores to Rs17.78 crores. Multiple challenges were made including on account of the law being ultra vires. In a cross appeal arising out of decision of Bombay High Court, the Supreme Court while dismissing the SLP of the Municipal Corporation regarding the levy of tax based on the future or intended use of land held that the tax can be levied only on the basis of present position and until an occupancy certificate is issued, the tax can be collected only as land and not as a building.

So long as a building is not completed or constructed to such an extent that at least a partial completion notice can be given so that the completed portion can be occupied and let, the land can, for purposes of rating, be equated with or treated as vacant land.

The SLP of the property owners interlaid challenging the vires of the act was also dismissed.

Since the statutory provisions do not contemplate any likelihood of exploitation of capacity in future, the capital value of the land and building must be based on situation “in present”. It must be clarified here that in projects which are in progress, the value addition to the property would be ongoing feature. However, considering clauses (a) to (d), it would mean that the governing principle must be the actual use and not the intended use in future.

This judgment deals with the capital value system of assessment of taxes in Mumbai and will thus have limited scope but will have repercussions in times to come for all Real Estate developers in the entire country as a precedent whenever the other municipalities adopt the same system.

FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER

1. Leave granted in all Special Leave Petitions.

2. These appeals are challenging the common judgment and order dated 24.4.2019 passed by the Division Bench of the High Court of Judicature at Bombay in Writ Petition No. 2592/2013 and connected matters. Contempt Petition (Civil) No. 38/2021 has been filed against the alleged contemnor for disobedience of orders dated 29.7.2019, 21.10.2019 and 22.11.2019 passed by this Court in the appeal arising out of said SLP(C) No. 17009 of 2019. For the present purposes, said Contempt Petition is segregated with a direction to list the same before an appropriate Court after six weeks.

3. The Mumbai Municipal Corporation Act, 1888¹ has been enacted by the State Government to consolidate and amend various Municipal Acts which were in force relating to the Municipal administration of the city of Mumbai. The Municipal Corporation of Greater Mumbai (“the Corporation” for short) has been established and discharging its duties under the MMC Act.

4. The MMC Act authorizes the Corporation to impose property tax on lands and buildings. Importantly, property tax is one of the main sources of revenue for the Corporation, specifically after abolition of Octopi. The MMC Act earlier provided for levy of property tax on the basis of certain percentage of ratable value of the buildings or lands. The basis of determination of ratable value as provided in the MMC Act was the annual rent for which such buildings or lands might reasonably be expected to be let from year to year.

5. The Corporation appointed Tata Institute of Social Sciences (for short “TISS”) and University of Mumbai to study the system of levy of property tax and to suggest alternative system for such levy. TISS submitted a detailed report recommending that capital value ­based system of assessment be adopted in place of annual rental system. After detailed discussions with stake holders and based on the recommendations of TISS, the MMC Act was amended by the Maharashtra Act No. XI of 2009. The amendment incorporated an option and empowered the Corporation to levy property tax on the basis of capital value as an alternative to the earlier method of levying property tax on the basis of ratable value.

6. The Statement of Objects forming part of the Bill which led to the passing of the Maharashtra Act No. XI of 2009 was as under: –

“STATEMENT OF OBJECTS AND REASONS

Section 139 of the Mumbai Municipal Corporation Act (Bom.III of 1888) provides for imposition of taxes by the Municipal Corporation of Brihan Mumbai. The taxes to be so imposed provide inter alia property taxes on buildings or lands. The property taxes include water tax, water benefit tax, sewerage tax, sewerage benefit tax, general tax, education cress and street tax, which are livable on the basis of certain percentage of ratable value of the buildings or lands.

2. Section 154 of the Act provides the method of fixing ratable value of any buildings or lands assessable to property tax. The basis to determine the ratable value is the annual rent for which such buildings or lands might reasonably be expected to let from year to year, less 10 per centum of the said annual rent and the said deduction is in lieu of all allowances for repairs or on any other account whatever.

3. The determination or fixation of the ratable value under different Municipal Acts or Municipal Corporation Acts throughout India for the purpose of levy of property taxes under these Acts has resulted in ceaseless dispute. There has been a catena of decisions rendered by various High Courts and the Supreme Court in respect of the matter of fixation of ratable value particularly because of the provisions of Rent Control Legislation in various States including the State of Maharashtra. On account of these decisions the annual rent to be taken into account for fixation of ratable value of any buildings or lands has been pegged down to the standard rent of any buildings or lands according to the provisions of the Rent Control Acts. In so far as the area of the Municipal Corporation of Brihan Mumbai is concerned, the Rent Control Act, which provided for standard rent for the first time, was the Bombay Rent Restriction Act. 1939 (Bom. XVI of 1939). This Act was repealed by the Bombay Rents, Hotel Rates and Lodging House Rates (Control) Act, 1944 (Bom.VII of 1944), which had been replaced by the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (Bom. LVII of 1947), which has also been now repealed by the Maharashtra Rent Control Act, 1999 (Mah. XVIII of 2000) which came into force on the 31^st day of March 2000 and is at present in operation. Thus the Rent Control Act has been in operation in the Mumbai Municipal Corporation area for over 65 years. In effect, therefore, the property tax has to be determined on the basis of ratable value fixed considering the annual rent, being the fair rent (standard rent) alone, regardless of the actual rent received. Fair rent very often means the rent prevailing prior for the year 1940 with some marginal modifications and additions. Because of the limitations or restrictions brought into play by the provisions of the Maharashtra Rent Control Act, 1999 and the various judgments of the Court in respect of fixation of ratable value for the purpose of levy of property taxes a lot of subjectivity has crept into the system by which the rent of buildings or lands is determined. Apart from this, it has also resulted in lack of transparency, equity and rationality in the system of assessment of property taxes. Property tax is one of the main sources of revenue to the Corporation. Due to such restrictions or limitations the income of the Corporation from property tax has remained static. To continue to compel the Corporation to levy and collect the property tax on the basis of fair rent or standard rent alone, while at the same time under Section 61 in Chapter III and other provisions of the Mumbai Municipal Corporation Act making it incumbent on the Corporation to make adequate provisions to perform all its obligatory and discretionary functions laid down by the Act may be to ask for the impossible. The cost of maintaining and laying roads, drains, water supply lines and providing other essential civic services and amenities, the salaries of staff and wages of employee and all other types of expenditure have gone up steeply over the last more than 65 years.

4. With a view to exploring the possibility of reforming the property tax system, so as to augment the revenue of the Corporation, the Tata Institute of Social Sciences (TISS), Mumbai were entrusted by the Corporation with the job to study the present system of levy of property taxes and to suggest any alternative system for such levy. After studying various systems available for assessment of property taxes within and without India, they have recommended that Capital Value Based System of Assessment in place of the Annual Rental System may be adopted, as according to them the trend in property tax practices in developing countries is to move away from the Annual Rental Value base to Capital Value base. The capital value based system of assessment has the following merits:­

(1) Formula based assessment is possible with simplicity,

(2) Self ­assessment is possible,

(3) Greater flexibility in tax administration which provides control over revenue,

(4) Subjectivity is eliminated to the extent possible,

(5) There is transparency and easy to understand,

(6) Tax revenue can keep pace with inflation and cost of living.

5. The highlights of the system recommended by the Tata Institute of Social Sciences is the shift from Annual Rental Value to Capital Value as the base for the purpose of levy of property taxes at a certain rate which may be determined by the Corporation and such value is proposed to be adopted as the value of any buildings or lands as is indicated in the Stamp Duty Ready Reckoner for the time being in force as prepared under the Bombay Stamp (Determination of True Market Value of Property) Rules, 1995 and the capital value of the property could then be computed by applying thereto factors such as location, carpet area, type of construction, age of property and user thereof. In this system properties which are old or of semi permanent structures including crawls, will be given due consideration and concession. Care is also taken to provide for an appropriate cap on the increase on property tax on account of switching over to the capital value base of levy.

6. It is a modest attempt to enable the Corporation to augment its revenue so as to meet the ever rising expenditure in providing appropriate an adequate infrastructure for rendering civic services in the City like Mumbai and its suburbs. Having regard to the status thereof as a financial capital of India, the Mumbai City requires a special attention.

7. The amendments to the Mumbai Municipal Corporation Act (Bom. III of 1888) proposed in this Bill are intended to achieve the above­mentioned objectives.”

7. The MMC Act was, thereafter, amended by successive amendments as a result of which newly introduced Section 154(1A) and (1B) MMC Act now authorizes Municipal Commissioner to fix the Capital Value of land and building with the approval of the Standing Committee. Accordingly, the Commissioner formulated Factors and Categories of Users of Buildings or Lands (Assignment of Weightages by Multiplication) Fixation of Capital Value Rules, 2010 (‘the Capital Value Rules of 2010’, for short) which came into force on and with effect from 20.03.2012, and Factors and Categories of Users of Buildings or Lands (Assignment of Weightage by Multiplication) Fixation of Capital Value Rules, 2015 (‘the Capital Values Rules of 2015’, for short), which came into force on 01.04.2015.

8. It must be stated here that on 20.01.2010 a resolution was passed appointing an expert committee comprising of Dr. D.M. Sukthankar, Dr. D.N. Choudhary and Dr. Roshan Namavati to make recommendations on the Capital Value System. The draft rules prepared by the Committee were published in various newspapers on 18.10.2010 inviting objections. The last date for submissions and objections after due extension expired on 30.11.2010, where after final report was submitted. After obtaining the sanction of the Standing Committee, the Capital Value Rules, of 2010 were published on 20.03.2012. Subsequently, the Capital Value Rules of 2015 were also framed.

9. The relevant provisions of the MMC Act dealing with the matters in issue are extracted here for ready reference:

“120. Constitution of Fines Fund. Fines collected under section 83 shall be credited to a separate fund to be called “the Fines Fund” the proceeds of which shall be expended in promoting the well­being of municipal officers and servants other than those appointed under the provisions of Chapter XVIA of this Act, and for the payment of compassionate allowances to the widows of such officers and servants who die while in municipal service and to such other relation of the officers and servants as the corporation may from time to time determine.

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123. Accounts to be kept in forms prescribed by Standing Committee. Subject to the provisions of Chapter XVI­A of this Act accounts of the receipts and expenditure of the corporation shall be kept in such manner and in such forms as the Standing Committee shall from time to time prescribe:

Provided that, the accounts of the Water and Sewage Fund and the Consolidated Water Supply and Sewage Disposal Loan Fund shall be maintained on the accrual basis, unless otherwise prescribed by the Standing Committee.

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125. Estimates of expenditure and income to be prepared annually by Commissioner.

The Commissioner shall on or before each fifth day of February, have prepared and lay before the Standing Committee, in such form as the said Committee shall from time to time approve, —

(1) (a) an estimate of the expenditure which must or should, in his opinion be incurred by the corporation in the next ensuing Official Year, other than—

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(ii)  expenditure to be incurred by reason of the obligations imposed on the corporation arising out of the transfer to the corporation of the powers, duties, assets and liabilities of the Board of Trustees for the improvement of the City of Bombay constituted under the City of Bombay Improvement Trust Transfer Act, 1925 13 or for any of the purposes of Chapter XII­A; and

(iii) expenditure to be incurred on account of the Brihan Mumbai Electric Supply and Transport Undertaking;

(iv) expenditure to be incurred for the purposes of clause (q) of section 61;

(v) expenditure to be incurred for the purposes of Chapters IX and X;

(b) an estimate of the balances, if any (other than balances) shown in the accounts maintained under sections 123A and 123C which will be available for appropriation or expenditure at the commencement of the next ensuing official year;

(c) an estimate of the corporation’s receipts and income for the next ensuing official year other than from taxation and from the Brihan Mumbai Electric Supply and Transport Undertaking and other than that referred to in clause (c) of sub­section (2) and in clause (d) of section 126C and in section 126E;

(cc) an estimate of the amount due to be transferred during the next ensuing official year to the municipal fund under the provisions of sections 460KK and 460LL;

(d) a statement of proposals as to the taxation which it will, in his opinion, be necessary or expedient to impose under the provisions of this Act in the next ensuing official year;

(2) (a) an estimate of the expenditure which must or should, in his opinion, be incurred by the corporation in the next ensuing official year by reason of the obligations imposed upon the corporation arising out of the transfer to the corporation of the powers, duties, assets and liabilities of the Board of Trustees for the Improvement of the City of Bombay constituted under the City of Bombay Improvement Trust Transfer Act, 1925 or for any of the purposes of Chapter XII­A;

(b) an estimate of all balances, if any in the account maintained under section 122A, which will be available for appropriation or expenditure at the commencement of the next ensuing official year;

(c) an estimate of the corporation’s receipts and income for the next ensuing official year—

(i) arising from sales, leases and other dispositions of immovable property vesting in the corporation by reason of the enactment of the City of Bombay Municipal (Amendment) Act, 1933 or acquired by the Corporation for any of the purposes of Chapter XII­A; and

(ii) being payments of interest on and repayments in whole or part of the capital of loans granted by the corporation and secured on the aforesaid immovable property;

(d) an estimate of three times the amount of the net estimated realizations’ of the corporation in the then current financial year under the head of general tax (including arrears and payments in advance) divided by the rate fixed for general tax for the then current financial year;

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Provided further that, with effect from the financial year 1974­75, this sub clause shall have effect as if for the words “three ­times” the word “twice” were substituted;

(e) an estimate of the Corporation’s receipts and income, other than receipts and income referred to in other clauses of this sub­section arising from or relating to, transaction connected with the obligations imposed upon the Corporation by the transfer to the Corporation of the powers, duties, assets and liabilities of the said Board of Trustees or with the exercise of the powers and duties conferred or imposed upon the Corporation by Chapter XII­A including grants from the State Government.

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128. Fixing rates, of municipal taxes and of fares and charges of “Brihan Mumbai Electric Supply and Transport Undertaking”

(1) The Corporation shall, on or before the twentieth day of March after considering the Standing Committee’s proposals in this behalf, —

(a) determine, subject to the limitations and conditions prescribed in Chapter VIII, the rates at which municipal taxes shall be levied, and the articles on which octroi shall be levied, in the next ensuing official year:

Provided that, the Corporation may determine different rates of property taxes for different categories of users of a building or land or part thereof; and

(b) approve, subject to the limitations and conditions which may have been prescribed by or under any of the enactments or any license referred to in clause (is) of sub­section (2) of section 126B, the rates at which the fares and charges in respect of the Brihan Mumbai Electric Supply and Transport Undertaking shall be levied.

(2) Except under sections 134,196, 460H and 460I, the rates so fixed and the articles so appointed shall not be subsequently altered for the year for which they have been fixed.

(3) Notwithstanding anything contained in sub­sections (1) and (2), the Corporation may, at any time during the official years 2010­2011, 2011­2012 and 2012­2013 determine, separately for each of the said three years, the rates of property taxes for different categories of users of a building or land or part thereof. The rates of property taxes so determined shall be effective and shall be deemed to have been effective from the 1st of April of those three years and the taxes for the said three years shall be livable and payable at the rates so determined.

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139. Taxes to be imposed under this Act. For the purpose of this Act, taxations shall be imposed as follows, namely:­

(1) property taxes;

(2) a tax on dogs: and

(3) a theatre tax;

139A. Property taxes what to consist.

(1) Property taxes livable on buildings and lands in Brihan Mumbai under this Act shall include water tax, water benefit tax, sewerage tax, sewerage benefit tax, general tax, education cress, street tax and betterment charges.

(2) For the purposes of levy of property taxes, the expression “Building” includes ­a flat, a gala, a unit or any portion of the building.

(3) All or any of the property taxes may be imposed on a graduated scale.

(4) Save as otherwise provided in this Act, it shall be lawful ­ for the Corporation to levy all property taxes on the ratable value of buildings and lands until the Corporation adopts levy of any or all the property taxes on such buildings and lands on the capital value thereof under section 140A.

140. Property taxes livable on ratable value, or capital value as the case may be, and at what rate. (1) The following property taxes shall be levied on building and lands in Brihan Mumbai, namely: –

(a) (i) the water tax of so many per centum of their ratable value, or their capital value, as the case may be, as the Standing Committee may consider necessary for providing water supply;

(ii) an additional water tax which shall be called ‘the water benefit tax’ of so many per centum of their ratable value, or their capital value, as the case may be, as the Standing Committee may consider necessary for meeting the whole or part of the expenditure incurred or to be incurred on capital works for making and improving the facilities of water ­supply and for maintaining and operating such works;

Provided that all or any of the property taxes may be imposed on a graduated scale.

(b) (i) the sewerage tax of so many per centum of their ratable value, or their capital value, as the case may be, as the Standing Committee may consider necessary for collection, removal and disposal of human waste and other wastes;

(ii) an additional sewerage tax which shall be called the “sewerage benefit tax” of so many per centum of their rateable value, or their capital value, as the case may be, as the Standing Committee may consider necessary for meeting the whole or a part of the expenditure incurred or likely to be incurred on capital work ­ for making and improving facilities for the collection, removal and disposal of human waste and other wastes and for maintaining and operating such works;

General tax

(c) a general tax of not less than eight and not more than fifty per centum of their ratable value, or of not less than 0.1 and not more than 1 per centum of their capital value, as the case may be, together with not less than one eight and not more than five per centum of their ratable value or not less than 0.01 and not more than 0.2 per centum of their capital value, as the case may be, added thereto in order to provide for the expense necessary for fulfilling the duties of the corporation arising under clause (k) of section 61 and Chapter XIV;

Education cess

(ca) the education cess livable under section 195E;

(cb) the street tax livable under section 195G;

(d) betterment charges livable under Chapter XII­A.

(2) Any reference in this Act or in any instrument to a water tax or a halalkhor tax shall after the commencement of the Bombay Municipal Corporation (Amendment) Ordinance, 1973, be construed as a reference to the water tax or the water benefit tax or both or the sewerage tax or the sewerage benefit tax, or both as the context may require;

140A. Property taxes to be levied on capital value and the rate thereof. (1) Notwithstanding anything contained in section 140 or any other provision of this Act, the Corporation may pass a resolution to adopt levy of property tax on buildings and lands in Brihan Mumbai on the basis of capital value of the buildings and lands on and from such date, and at such rates, as the Corporation may determine in accordance with the provisions of section 128:

Provided that, for the period of five years from the date on and from which such property tax is levied on capital value, the tax shall not:

(a)exceed, ­

(i) in respect of building used for residential purposes, two times, and

(ii) in respect of building or land used for non­residential purposes, three times, and

(b)where the tax so levied on any building or land, whether used for residential or for non­residential purposes, gets reduced, be less than half of the amount of the property tax livable in respect thereof in the year immediately preceding such date:

shall not exceed, ­

(i) in respect of building used for residential purposes, two times, and

(ii) in respect of building or land used for non­residential purposes, three times,

the amount of the property tax livable in respect thereof in the year immediately preceding such date:

Provided further that, where the property taxes levied in respect of any residential or non­residential building or portion thereof were on the basis of annual letting value arrived at considering the leave and license charges, by whatever name called, then for the purposes of the first proviso it shall be lawful for the Commissioner to ascertain such tax livable during such immediately preceding year, as if such building or portion thereof were self­ occupied and had been so entered in the assessment book:

Provided also that, the property tax levied on the basis of capital value of any building or land on revision made under sub section (1C) of section 154 shall not in any case exceed 40 per centum of the amount of the property tax payable in the year immediately preceding the year of such revision:

Provided also that, for the period of five years commencing from the year of adoption of capital value as the base, for levy of property tax under section 140A, the amount of property tax livable in respect of a residential building or residential tenement, having carpet area of 46.45 sq. meter (500 sq. feet) or less, shall not exceed the amount of property tax levied and payable in the year immediately preceding the year of such adoption of capital value as the basis.

Provided also that, for a period of five years commencing on the 1st April 2015, the amount of property tax livable in respect of a residential building or residential tenement, having carpet area of 46.45 sq. meter (500 sq. feet) or less, shall not exceed the amount of property tax which is being levied and payable in respect of such residential building or tenement as on the 31st March 2015.

Provided also that, for the financial year 2019­20, the provisions of the preceding proviso shall apply as if the general tax livable under clause (c) of sub­section (1) of section 140 do not form part of the property tax livable under that section.

(2) Notwithstanding anything contained in sub­section (4) of section 139A or any other provisions of this Act or Resolution, if any, passed by the Corporation for adopting the levy of property tax on the basis of capital value but subject to the provisions of section 154A, buildings and lands in respect of which the process of fixing capital value is in progress on the 26th August 2010, being the date of coming into force of section 3 of the Maharashtra Municipal Corporations and Municipal Councils (Third Amendment) Act, 2010, until it is so fixed, the tax livable and payable in respect of such buildings and lands shall provisionally be equal to the amount of tax livable and payable in the preceding year, that is to say, for the year commencing on the first day of April 2009 and ending on the thirty ­first day of March 2010 and such provisional tax shall be livable and payable for each of the years 2010­2011, 2011­2012 and 2012­2013, according to the provisional bills which may be issued separately for each such year; so, however, that on fixation of capital value of the respective buildings and lands, final bill of assessment of property taxes on the basis of capital value may then be issued for each such year as aforesaid. After such final assessment, if it is found that the assessee has paid excess amount, such excess shall, notwithstanding anything contained in section 179, be refunded within three months from the date of issuing the final bill, along with interest from such date as provided in the first proviso to sub­section (5) of section 217, or after obtaining the consent of the assessee, shall be adjusted towards payment of property tax due, if any, for the subsequent years; and if the amount of taxes on final assessment is more than the amount of tax already paid by the assessee, the difference shall be recovered from the assessee.

(2A) Notwithstanding anything contained in sub­section (1) or (2) or any other provisions of this Act, the tax on buildings and lands, which are liable to be assessed for the first time on or after the 1st April 2010, shall provisionally be equal to the amount of tax, as if such buildings and lands are liable to be assessed in the year 2009­-2010; and on ascertainment of the capital value of such ‘buildings and lands, the corporation may issue a final bill in respect of the years for which they are liable to be assessed, on the basis of capital value thereof and accordingly it shall be the duty of the owner and occupier of such buildings and lands to pay such tax within the period specified in the final bill issued as aforesaid.

(3) Notwithstanding anything contained in section 163 or 217 or any other provisions of this Act and having regard to the fact that the property tax bill has been issued in accordance with the provisions of sub­section (2), not being a final bill, such bill shall not be questioned before any forum; and no complaint or appeal shall lie against such bill merely on the ground that capital value in respect of the property which is subject matter of the bill is not yet fixed, or that the amount of tax livable and payable at the rate of property tax determined by the Corporation is not yet finally ascertained, or on any other ground whatever.

Explanation.­ For the purposes of this section, after the Corporation adopts the Capital Value as the basis of levy of property tax, the property tax in respect of any taxable building shall be revised after every five years and on each such revision, such amount of property tax, shall not in any case exceed the forty per cent of the amount of the property tax levied and payable in the year immediately preceding the year of the revision.

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154. Ratable value or capital value how to be determined. (1) In order to fix the ratable value of any building or land assessable to a property tax, there shall be deducted from the amount of the annual rent for which such land or building might reasonably be expected to let from year to year as unequal to ten per centum of the said annual rent and the said deduction shall be in lieu of all allowances for repairs or on any other account whatever.

(1A) In order to fix the capital value of any building or land assessable to a property tax the Commissioner shall have regard to the value of any building or land as indicated in the Stamp Duty Ready Reckoner for the time being in force as prepared under the Bombay Stamp (Determination of True Market Value of Property) Rules, 1995, framed under the provisions of the Bombay Stamp Act, 1958, as a base value² or where the Stamp Duty Ready Reckoner does not indicate Value of any properties in any particular area wherein a building or land in respect of which capital value is required to be determined is situate, or in case such Stamp Duty Ready Reckoner does not exist, then the Commissioner may fix the capital value of any building or land taking into consideration the market value of such building or land, as a base value. The Commissioner while fixing the capital value as aforesaid, shall have regard³ to the following factors, namely: –

(a) the nature and type of the land and structure of the building, ­

(b) area of land or carpet area of building,

(c)user category, that is to say, (i) residential, (ii) commercial (shops or the like), (iii) offices, (iv) hotels (upto 4 stars), (v) hotels (more than 4 stars), (vi) banks, (vii) industries and factories, (viii) school and college building or building used for educational purposes, (ix) malls and (x) any other building or land not covered by any of the above categories,

(d) age of the building, or

(e) such other factors as may be specified by rules made under subsection (1B).

(1B) The Commissioner shall with the approval of the Standing Committee, frame such rules as respects the details of categories of building or land and the weightage by multiplication to be assigned to various such factors and categories for the purpose of fixing the capital value under sub­section (1A).

(1C) The capital value of any building or land fixed under sub­section (1A) shall be revised every five years:

 Provided that, the Commissioner may, for reasons to be recorded in writing, revise the capital value of any building or land any time during the said period of five years and shall accordingly amend the assessment book in relation to such building or land under section 167.

(1D) (a) Notwithstanding anything contained in sub­section (1C),­

(i) due to the spread of COVID­19 pandemic, the capital value of any building or land fixed under sub­section (1A) shall not be revised in the year 2020­-21 and the year 2021­-22;

(ii)for the year 2020­21 and the year 2021­22, the property tax bill for any building or land shall be the same as is for the year 2019­20;

(iii) the capital value of any building or land fixed under sub­section (1A) shall be revised in the year 2022-­23, as if the clause (i) is not applicable for the year 2020­21 and the year 2021-­22.

(b)Subject to the proviso to sub­section (1C), the next revision shall be in the year 2025­26, and, thereafter, the revision of capital value of any building or land, shall be in accordance with the provisions of sub­section (1C).

(2) The value of any machinery contained or situate in or upon any building or land shall not be included in the rateable value or the capital value, as the case may be, of such building or land.

154A. Provisional fixation of capital value in certain cases. Notwithstanding anything contained in section 154, the rateable value of any building or land or part thereof, for the official year 2009-­2010, shall be the provisional capital value of such building and lands in respect of the official years 2010-­2011, 2011­-2012 and 2012-­2013, and such provisional capital value shall be deemed to be the capital value validly and legally fixed under the provisions of this Act, pending fixing the capital value thereof, and it shall be lawful for the Commissioner to treat it as such for the purposes of assessment book kept under the provisions of this Act, and the bill for property taxes issued under sub­section (2) of section 140A shall be deemed to have been validly and legally issued under the provisions of this Act.

Provided that, in respect of the buildings and lands which are liable to be assessed for the first time on or after the 1st April 2010, the capital value of such buildings and lands shall, until the final capital value is determined under this section, be provisionally equal to the amount of ratable value worked out on the basis of the prescribed letting rates by the corporation in respect of the official year 2009­2010.

155. Commissioner may call for information or returns from owner or occupier or enter and inspect assessable premises. (1) To enable him to determine the ratable value or the capital value, as the case may be, of any building or land and the person primarily liable for the payment of any property tax livable in respect thereof the Commissioner may require the owner or occupier of such building or land, or of any portion thereof, to furnish him, within such reasonable period as the Commissioner prescribes in this behalf, with information or with a written return signed by such owner or occupier­

(a) as to the name and place of abode of the owner or occupier, or of both owner and occupier of such building or land; and

(b) as to the details in respect of any or all the items as enumerated in clauses (a) to (e) of sub­section (1A) of section 154 in relation to such building or land or any portion thereof.

(2) Every owner or occupier on whom any such requisition is made shall be bound to comply with the same and to give true information or to make a true return to the best of his knowledge or belief.

(3) The Commissioner may also for the purpose aforesaid make an inspection of any such building or land.

156. Assessment book what to contain.

The Commissioner shall keep a book, in such form and manner as he may, with the approval of the Standing Committee, determine, and such book shall be called “the assessment book” in which shall be entered every official year­

(a) a list of all buildings and lands in Brihan Mumbai distinguishing each either by name or number, as he shall think fit;

(b) the ratable value or the capital value, as the case may be, of each such building and land determined in accordance with the foregoing provisions of this Act;

(c) the name of the person primarily liable for the payment of the property taxes, if any, livable on each such building or land;

(d) if any such building or land is not liable to be assessed to the general tax or is exempt from payment of property tax either in whole or in part, as the case may be, the reason of such non ­liability or exemption, as the case may be;

(e) when the rates of the property taxes to be levied for the year have been duly fixed by the corporation and the period fixed by public notice, as hereinafter provided, for the receipt of complaints against the amount of ratable value or the capital value, as the case may be, entered in any portion of the assessment book, has expired, and in the case of any such entry which is complained against, when such complaint has been disposed of in accordance with the provisions hereinafter contained, the amount at which each building or land entered in such portion of the assessment book is assessed to each of the property taxes, if any, livable thereon;

(f) if under section 169, a charge is made for water supplied to any buildings or land by measurement or the water taxes or charges for water by measurement are compounded for, or if, under section 170, the sewerage taxes or sewerage charges for any building or land are fixed at a special rate, the particulars and amount of such charges composition or rates;

(g) such other details, if any, as the Commissioner from time to time thinks fit to direct.”

10. The relevant portion of the Capital Value Rules, 2010 is as under: –

“No. AC/NTC/1310/2011­22 dated 20.03.2012. In exercise of the powers conferred by clause (e)s of sub­section (1A) and sub­section (1B) of section 154 of the Mumbai Municipal Corporation Act (Act No. Bom. III of 1888), and of all other powers enabling him in this behalf, the Commissioner, after having obtained the approval of the Standing Committee, as required under the said sub­section (1B), hereby makes the following rules to provide for the factors and categories of users of buildings or lands and the weightage by multiplication to be assigned to various such factors and categories for the purpose of fixing the capital value of buildings and lands in Brihan Mumbai, namely:­