MOTICHAND HIRACHAND & ORS. versus BOMBAY MUNICIPAL CORPORATION

MOTICHAND HIRACHAND & ORS. versus BOMBAY MUNICIPAL CORPORATION

Income derived from an agreement for the display of advertisements on a building, whether rent or licence fee, is relevant to fixing the rateable value under s. 154(1) of the Bombay Municipal Corporation Act because a hypothetical tenant would factor such income into the rent he is prepared to pay. The High Court was therefore correct in confirming the increase in the property's rateable value.

Parties
Appellants: Motichand Birachband & Ors.; Respondent: Bombay Municipal Corporation
Jurisdiction
India
Judgment Date
15 September 1967
Procedural Posture
Civil Appeal / Supreme Court of India Final Appellate Stage
Outcome
Appeal dismissed with costs.
Legal Topics
Rateable Value Assessment, Advertising Income, Lease Vs Licence, Property Tax, Valuation of Property
Municipal Law Property Law Taxation Rateable Value Assessment Advertising Income Lease Vs Licence Property Tax Valuation of Property

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Parties

Motichand Birachband & Ors.

Appellants

Bombay Municipal Corporation

Respondent

Procedural Posture

Civil Appeal / Supreme Court of India Final Appellate Stage

Legal Issues

  1. 1 Whether income from display of advertisement on the building's roof can be included in the rateable value under s. 154(1) of the Bombay Municipal Corporation Act, 1888.

Ratio Decidendi

Income derived from an agreement for the display of advertisements on a building, whether rent or licence fee, is relevant to fixing the rateable value under s. 154(1) of the Bombay Municipal Corporation Act because a hypothetical tenant would factor such income into the rent he is prepared to pay. The High Court was therefore correct in confirming the increase in the property's rateable value.

Court Disposition

Appeal dismissed with costs.

Orders

  • Appeal dismissed.
  • High Court order confirming enhancement of rateable value upheld.