TaxTMI 
TaxTMI 
1997 (7) TMI 706
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....1968 (Annexure P-4). Term of initial allotment was up to 1980 only which term has been extended from lime to lime. Presently the term of the lease stand extended for a period of 20 years commencing 1-1-1991 and expiring with 31-12-2010 on the terms and conditions set out in the lessor's letter dated 20-7-1994 (page 144 of the paper book), Both the above said letters provide for a formal lease deed being executed between the parties but no such deed has been executed. The gram is governed by the Government grants Act, 1895. 3. The petitioner has laid challenge to the authority of the respondent to recover the property tax on two grounds firstly, that the tax is livable only on an 'owner' which the petitioner is not being a lessee merely; secondly; the issue as to the liability of the petitioner to pay the property tax having been decided in favor of the petitioner exonerating it from such liability in two civil suits filed earlier, the respondent cannot raise the demand as the two judgments constitute res judicata and bind the parties. 4. The first question is whether the petitioner is at all liable to payment of tax? 5. It is not disputed that demand in question has ....
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.... on Dr. Zakir Hussain Marg, New Delhi beyond 31-12-1990 on the following terms and conditions:-- I. The period of temporary lease will be for a period of 20 years i.e. from 1-1-1991 to 31-12-2010. II. (i) The Delhi Golf Club shall be required to pay annual ground rent for 2.08 acres or area required as per building bye laws for the covered areas @ 5% of Rs. 39 lakhs per acre. (ii) The Club shall pay the license Fee @ Rs. 1000/- per acre for the green area measuring 176.92 acres. (iii) There will be complete ban of construction on green areas and prior permission of the Government would be necessary for any construction on 2.08 acres. (iv) The Delhi Golf Club shall pay the property tax/service charges or any other lexes demanded by local bodies or pay the Government the equivalent amount (in case Government is billed by local bodies) for the entire land under their occupation. Though the properly tax for the period prior to 1-1-1991 does not form part of the Current lease Agreement. the Club shall however, settle al! issues pertaining to outstanding property tax etc. with N.D.M.C. as communicated to them vide their office letter dated 26-4-1993 and make necessary payments ....
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....ax) and we have no reason to decide I have the same. It may be stated that during the course of hearing no challenge was laid to the correctness of the factual data contained in the statement which is as under : Annexure R_XIII A list of application and other letters filed by the Secretary. Delhi Golf Club under S. 189(3) and other relevant provisions of the P. M. Act. 1911 and the sanctions issued by the NDMC thereto. S. No. Date of application of the Club Seeking NDMC's permission for Decision of N.D.M.C. 1. 7-9-64 Erection of the building of the Delhi Golf Club Plans approved vide Resolution No. 26 dated 13-1 1-64. 2. 10-01-66 Grant of occupation certificate to the Bldg. of Golf Club. Occupation certificate granted vide Reso. No. 23Adl. 28-01-66 3. 21-02-1967 Addition/Alteration to the building of Approved vide resolution No. 85 dated 24-7-67. 4. 23-10-1967 Undertaking for adequate sanitary & drainage arrangements and application for construction of a canteen Approved vide Reso. No. 190 dated 6- 11 -67. 5. 6-11-67 Addition/Alteration to Club Building Approved vide Reso. 95 dt. 16-12-67 6. I2-11-1970 Extension of kitchen and minor corrections to head-r....
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.... by us) 12.2 In the same dictionary, the term 'ownership has been defined to mean inter alia, as -- 'collection of rights to use and enjoy property, including right to transmit it to others the right of one or more persons to possess or use a thing to the exclusion of others. A right by which a thing belongs to someone in particular, to the exclusion of all other persons. (Underlining by us) 12.3 In State of U.P. v. Renusagar Power Company. AIR 1988 SC 1737, it was held that the word "owned" is a generic term embracing within itself several gradiations of title, dependent on the circumstances, and it does not necessarily mean ownership in fee simple; it means, "to possess to have or hold as property. 12.4 Looking at the context in which the word "owner" has been used in Section 61(1) (a) and the inclusive definition given in Section 2( 11), we are of the opinion that to attract applicability of Section 61 one need not to be an owner of the property as holding full title therein including power of disposal it is enough if the person holding the properly has right to possess and use it to the exclusion of others. 13. In Section 61(1)(a) of the Punjab Municipal Act, the t....
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.... of 'land' as given in Section 2(24) already reproduced. Let it not be forgotten that kind means not only land considered from the dictionary point of view, hut also any benefit in land and anything attached to the earth or permanently fixed to it. In that sense, whatever the petitioner has got by paying Rs. 16,00,000/-after a public auction is an interest or a benefit in land which is 'land' within the meaning of the Section and is Therefore, subject to property tax. This is one aspect of the matter. Another aspect is that the true legal position is not to be judged in the light of or in the absence of a formal document. The auction of the land was intended to transfer leasehold rights to the petitioner. It fructified into such a contract as a result of the auction. It may he that there were some defects in the auction which led to no transfer of property to me petitioner, but if, that is so, the proper remedy of the petitioner is to institute proceedings against the Delhi Development Authority to cancel the sale and to re-transfer the property back to the Delhi Development Authority. Until such proceedings are taken, no third person can take into consideration the....
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....- (i) Whether the plaintiffs have only temporary lease of the disputed premises of the Golf Club ? (ii) Whether the assessment of annual value of the disputed property is illegal and ultra virus as alleged in para 3 of the plaint? 17.1 Both the suits were disposed of by a common judgment (Annexure PS). A perusal of the judgment shows that the leaned trial Judge has by his judgment dated 27-4-1973 concluded that the petitioner was holding only a temporary lease. No formal deed of lease was executed. As the tax was livable only on an 'owner', the petitioner was not liable to pay the property tax. 17.2 The NDMC preferred an appeal to the Court of Additional Distl. Judge. Delhi. By judgment dated 5-3-1977( Annexure P6). the learned Addl. Distl. Judge also held that the petitioner being not an 'owner', but a mere temporary lessee or a licences, was not liable to pay the house tax. 17.3 The NDMC preferred second appeals to the High Court which were unfortunately got dismissed as withdrawn on 30-8-1985. The reasons for withdrawal do not fired mention in the order of the High Court permitting the withdrawal (Annexure P-7). 18. Though the copies of the judgments have....
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....uestion of assessment from one year to another in taxation and rating cases form an interesting exception to the principles of issue estoppel, by which they are not governed. They are sui generis in this regard and issues involved in the determination of a question inter panes as to liability for tax or rates in one year, or on the fixing of one assessment list, even though the question determined he fundamental to liability. will not form the basis of an estoppel inter parties in other and subsequent proceedings in which the assessment format year or that list is not involved. (Turner, para 219 at p. 193). 23.2 It is now settled law that decisions on questions of land tax. income lax and rating assessments constitute an important exception to the general rules as to res judicata. and that such decisions given in regard, to one year's tax or rates, or as to given rating or assessment lists, do not give rise to estoppels binding the parties in respect of another year's tax or rates, or a later assessment list, (para 309 at p. 260 ibid). 23.3 But nut only decisions at an administrative level, but also those by courts of competent general jurisdiction fall within the excepti....
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....either case the view adopted with regard to them is incidental to its only direct function, that of fixing the assessment. For that limited purpose it i s a court with a jurisdiction competent to produce a final decision between the parties before it : but it is not a court of competent jurisdiction to decide general questions of law with that finality which is needed to set up the estoppel per rem judicator that arises in certain contexts from legal judgments." 24.3.2 The other consideration was the special position of the valuation officer/surveyor or equivalent official or comminute to whom he said the term "party" to Ms can he applied only with some reservations. 24.3.3 Lord Kith of Avonholm though concurring expressed himself differently as under:-- "What we are faced with here is an administrative act of a public official, the valuation officer, against which the party affected has a right of appeal, to the local valuation court, with further appeals to higher courts. The valuation officer has a public duty to perform by making periodically every five years a valuation list of all hereditaments, with certain exceptions, in his ruling area. He must necessarily reconsider a....