2012 (6) AIR Bom R 228 ::AIR 2013 (NOC) (SUPP) 1082 (BOM.)

Bombay High Court

Hon'ble Judge(s): D. Y. Chandrachud , J

(A) Maharashtra Rent Control Act (18 of 2000) S. 3 (1)(b)— Mumbai Municipal Corporation Act (3 of 1888), S 154 — Property tax — Computation of rateable value of land or building — When Rent Control Act is applicable to premises in question the basis for determination of annual rental value would be standard rent — When Rent Control Act is not applicable to the premises, assessing authority while determining annual rent is not constrained by outer limit of standard rent — In such cases actual rent received by landlord is relevant consideration {" The charge of tax under S. 143 is on buildings and lands in Brihan Mumbai. The measure of the property tax is the rateable value under Section 154 which is based on the amount of annual rent for which the building or land may reasonably be expected to let from year to year. Where the premises of which the rateable value is to be determined are immune from the operation of the Rent Act as a result of the application of Section 3 of the Maharashtra Rent Control Act, 1999, the standard rent determinable with reference to the provisions of the Rent Act is not an inflexible outer limit. It is where the Rent Act is applicable to the premises of which assessment is sought to be made that the reasonable expectation of the landlord cannot exceed an amount computed with reference to the standard rent. As a natural corollary, when the Rent Act does not apply to the premises, the landl....