TaxTMI 
TaxTMI 
TaxTMI 
2011 (7) TMI 1007
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....a equivalent to 1,150 sq.ft. built up area situated at Ground Floor, Marine Chambers, 43, New Marine Lines, Mumbai-400 020. It is contended that petitioner was in possession and enjoyment of the property and was intending to let-out the said premises on rental basis and respondent - Company which is a US based company, had established its base at Bangalore and in order to carry on its business, approached the petitioner to create a licence in its favour and accordingly, an agreement came to be entered into namely Leave and Licence agreement was entered into on 5.10.2005 agreeing thereunder to pay a licence fee of Rs. 97,750/- per month with an understanding that licence fee would be enhanced at the rate of 5%, every year. It is contended th....
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....he month of January to March 2008 as arrears. It is contended that in view of the said demand, respondent, as agreed to under the Leave and Licence Agreement, was required to pay the demand raised by the Municipal Corporation of Greater Mumbai under which it has enhanced the municipal tax. It is also contended that the revision of the property tax by the Municipal Corporation of Greater Mumbai has resulted in petitioner receiving a demand notice and said fact having been intimated to the respondent by communication dated 20.07.2006, did not yield any positive result and as such, petitioner has got issued a statutory notice on 10.11.2008 (Annexure-"H") to comply with the demand made therein and there was no compliance with the demand made in....
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....ality increasing the rate of tax, the same was agreed to be paid by the respondent - licensee under the said clause 7.1 and not on account of increase on tax liability due to assessment and as such, it is contended that interpretation sought to be put forward by the petitioner/licensor is contrary to the agreement and it is contended that the clause therein is to interpreted as understood between the parties. 5. It is contended that after entering into leave and licence agreement, petitioner did not inform the Municipal Corporation about entering into such agreement and suppressed the same at the time of assessment to avoid liability of being assessed for commercial purposes. However, on the Municipal Corporation becoming aware about the s....
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....ence agreement dated 5.10.2005 which has been pressed into service by both the learned advocates appearing for parties namely clause 7.1, and same reads as under: "7.1 TAXES, ELECTRICITY, WATER CHARGES ETC. The Licensor shall bear and pay the taxes, water charges both present and future, payable in respect of the Scheduled Premises to the concerned Society/authority. In the event of increase in the municipal tax rate at a future date the Licensee shall subject to production of documentary proof by the Licensor, reimburse to the Licensor the amount equivalent to the difference between the tax as applicable at present and the enhanced rate. [Emphasis supplied] 9. Said leave and licence agreement came to be entered into between petitioner a....
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.... of two months, a receipt for Rs. 3,14,295/- has been issued by the society managing the said property namely Annexure C dated 27.12.2005 to the premises in question. 10. The cause of action for the licensor to claim the said amount as debt receivable from the respondent is based on the notice issued by Municipal Corporation of Greater Mumbai dated 20.07.2006 at Annexure-D. A perusal of the same would go to show that it is a notice issued to respondent herein under section 155 of the Mumbai Municipal Corporation Act to determine rateable value of the premises and as such respondent has been called upon to furnish a written return giving the dimension, rent of the premises, copy of the Agreement and on its failure to furnish the same, it ha....