Property Tax Can't Be Levied Without Following Statutory Assessment Procedure U/S 233 Of Kerala Municipality Act: High Court

The Kerala High Court stated that property tax can't be levied without following statutory assessment procedure under Section 233 of Kerala Municipality Act, 1994. Section 233 of the Kerala Municipality Act, 1994, deals with the levy of property tax by the Municipality on buildings and lands within its area. This section outlines the process of assessment and collection of property tax, specifying that it should be levied in accordance with the Act and prescribed rules. Justices ...

Gram Panchayat Cannot Levy Property Tax On Industrial Establishment Within Notified Industrial Areas: Karnataka High Court

The Karnataka High Court has held that the Gram Panchayat cannot levy or collect property taxes in respect of Industrial establishments located within areas notified by the Karnataka Industrial Areas Development Board (KIADB). Mere execution of a lease-cum-sale agreement or any administrative communication cannot vest power in the Gram Panchayat to levy tax in the absence of express delegation or statutory backing.Justice Sachin Shankar Magadum held thus while allowing a batch of petitions and...

Occupancy Certificate Not Final For Plinth Area Determination: Kerala High Court Upholds Luxury Tax U/S 5A Of Kerala Building Tax Act

The Kerala High Court stated that occupancy certificate not final for plinth area determination under Section 6 of the Kerala Building Tax Act. Justice Ziyad Rahman A.A. was addressing the issue where challenge raised by the assessee was against the assessment of building tax and luxury tax, by mainly placing reliance upon Occupancy Certificate. Section 5A Of Kerala Building Tax Act imposes luxury tax on residential buildings that exceed a certain plinth area threshold. Section ...

Ad Tax Cannot Be Imposed On Educational Institutions For Putting Up Non-Commercial Signages On Their Property: Karnataka High Court

The Karnataka High Court has set aside an advertisement tax demand notice issued by the Bruhat Bengaluru Mahanagara Palike (BBMP) to an educational institution for displaying non-commercial signage and boards on its own property.Justice Sachin Shankar Magadum held thus while allowing the petition filed by BS Gupta, Secretary of Gupta Education Trust, who had challenged the legality/validity of the order issued by BBMP, under Section 134 of the Karnataka Municipal Corporation Act, 1976. The court...

Luxury Tax U/S 5A Of Kerala Building Tax Act Is Constitutionally Valid, However, Demand Beyond 3 Years Is Unsustainable: Kerala High Court

The Kerala High Court stated that luxury tax under Section 5A Of Kerala Building Tax Act is constitutionally valid post 101st Amendment to the Constitution but a demand that extends to more than three years prior to the date of the demand notice cannot be legally sustained. Justices A.K. Jayasankaran Nambiar and P.M. Manoj opined that “Entry 49 of List II of the 7th Schedule to the Constitution deals with 'taxes on lands and buildings' and so long as the charge under Section 5A of the...

Eden Gardens Not A 'Public Street', Imposing Ad Tax Without Regulations Violates Rule Of Law: Calcutta High Court Quashes Demand Notice

The Calcutta High Court bench of Justices Arijit Banerjee and Justice Kausik Chanda has held that without framing Regulations or without the budget estimate prescribing the rates at which advertisement tax may be levied by Kolkata Municipal Corporation (KMC), computation and imposition of such tax would be arbitrary. It would have no rational basis. It would then be open to KMC to quantify such tax as per its sweet will, which cannot be countenanced under the rule of law.Brief Facts:Cricket...

Absence Of Formal Demand Notice For Property Tax During Pendency Of Litigation Does Not Absolve Assessee's Obligation To Pay: Kerala High Court

The Kerala High Court stated that absence of a formal demand notice for property tax during pendency of litigation does not absolve assessee's obligation to pay such tax. The Division Bench of Justices A.K. Jayasankaran Nambiar and P.M. Manoj stated that “The liability to pay the tax once assessed is on the assessee and in a situation where the assessee continuously pays the tax based on the assessment that is conducted, the mere fact that the Corporation did not choose to issue a...

'Industrial Building' Not Limited To Manufacturing Units, Can Include IT & Software Offices For Purposes Of Property Tax: Delhi High Court

The Delhi High Court has held that the scope of an 'Industrial Building' cannot be restricted merely to traditional notions of manufacturing involving tangible and physical goods.Justice Purushaindra Kumar Kaurav rather held that an 'Industrial Building' encompasses IT sector businesses where non-material inputs such as data, digital content, or intellectual capital are subjected to systematic transformation or reconstitution into new intellectual property outputs, such as software, algorithms,...

Supreme Court Upholds Dual Taxation On Broadcasting, Says States Can Levy Entertainment Tax Alongside Centre's Service Tax

While upholding the State's authority to impose entertainment tax on broadcasting services like cable TV, digital streaming, and OTT platforms, the Supreme Court held that both the Centre and the State are empowered to levy service tax and entertainment tax, respectively, on assessees such as cable operators and entertainment service providers.The bench of Justices BV Nagarathna and N Kotiswar Singh held that broadcasting constitutes a form of communication, while entertainment falls under the...

Supreme Court Upholds Kerala's Luxury Tax On Cable TV As Constitutionally Valid

The Supreme Court today (May 22) upheld the constitutional validity of the Kerala luxury tax and allowed Kerala's appeal, affirming the state's power to tax cable TV services under Entry 62 of List II (State List) as “luxury.” The Court clarified that the service tax imposed by the Finance Act on broadcasting services under Entry 97 of List I (Union List) does not conflict with state taxes on entertainment, and therefore, no constitutional overlap exists between central and state levies. “in...

Kerala Municipality Act | Building Owners Liable To Pay Revised Property Tax For Past Three Years After Adjusting Previously Paid Amount: HC

The Kerala High Court stated that building owners liable to pay revised property tax for past three years, after adjusting previously paid amounts. The Bench of Justice Bechu Kurian Thomas was addressing the issue of whether, despite the creation of charge on the property enabling the Municipality to recover the arrears of tax as arrears of public revenue, the limitation period would stand extended beyond three years. The bench opined that despite the provisions of the Limitation...

Pune Municipal Corporation To Issue Property Tax Bills From 1st May; Says Verification Of 40% Concession Claims Causing Delay

Pune Property Tax Bills for the financial year 2025-2026 has been delayed to 1st May due to the ongoing verification of PT-3 applications which has been submitted by the homeowners seeking a 40% concession on residential properties. As per the state government regulations the property owners who reside in their own homes are entitled to a 40% concession on the property and to claim this benefit owners had to submit PT-3 forms. Pune Municipal Corporation (PMC) has received around...