GUIDE LINES FOR VALUATION OF IMMOVABLE PROPERTIES

VALUATION CELL
INCOME TAX DEPARTMENT
MINISTRY OF FINANCE
GOVERNMENT OF INDIA
2009



AGOVT OF WEST BENGAL

Unit Area Method of Assessment
 WEST BENGAL
Property Tax is one of the main sources of internal revenue of the Urban Local Bodies. As the property tax is determined on the basis of annual valuation of lands and buildings, the entire process of determining property tax is solely dependent on assessment of lands and buildings.

PRESENT SYSTEM OF ASSESSMENT OF LAND AND BUILDINGS:
Presently in the Urban Local Bodies of this State the following two systems of assessment of lands and buildings are followed:

  1. Annual Rental Value (ARV) System: In this system tax is calculated on annual rent that is actually or reasonably be fetched by a property. Here Annual Rent (AR) = Monthly actual or reasonable rent X 12. In this system Annual Value (AV) = AR minus x% (in case of Kolkata Municipal Corporation value of this x is 10%) statutory deduction for maintenance. A percentage of AV is determined as the annual Property Tax. In case of Kolkata Municipal Corporation this tax = (AV /600 + 10)% of the AV subject to minimum of 11% and a maximum of 40%.
  2. Capital Value Method: In this system tax is calculated on Annual Value derived from cost of construction added to cost/ market value of the land. Here AV = (Construction cost + Market value or cost of the land) X a percent as laid down in the statute minus statutory deduction. Annual Tax = AV X a percentage of AV. In Kolkata Municipal Corporation AV of vacant land is determined at 7% of the market value of the land.

FLAWS IN THE EXISTING SYSTEM OF VALUATION:

Since enactment of the Calcutta Municipal Act, 1923 these two systems are being followed for assessment of lands and buildings in the municipal areas. With growing rate of urbanization and change in the socio-economic scenario the flaws in these two systems are being surfaced, and due to these flaws the system of assessment of lands and buildings is getting more complex and as a fall out the rate of collection of Property Tax is dwindling and simultaneously the scope of tax management is growing. These flaws are as follows:

Flaws in Annual Rental Value (ARV) System:

  • Subjectivity: “Reasonable Rent” is a completely subjective term, and creates considerable scope for using discretion at even lower level.
  • Discrepancy: This system creates wide spread discrepancy by placing similar properties in dissimilar tax pattern.
  • Non transparency: Non transparency of this system leads to mutual mistrust and misunderstanding. Apart from this the system creates ample scope of tax management and entry of middleman in the system.
  • Wastage of time of officials: Officials remain busier in arguing with the tax payers, cumbersome and lengthy hearing process and file / document management, than to do the duty related to tax administration.
  • Non reflection of actual revenue potential: Subletting, subdivision and collusive rent have been hiding the actual revenue potential. Apart from long term tenancy and Rent Control properties lead to low valuation for low rent.

Flaws in Capital Value (CV) System:

  • Limited availability of sales data and unregistered instruments.
  • Under reporting of Transaction Price especially for old buildings.
  • Freezing of Tax base.
  • Need for qualified staff to assess cost.
  • Uncertainty of what assets should be covered.
  • Scope for subjectivity and discretion and hence non transparency.
  • Inequity between similarly placed properties assessed at different points of time.
    Subjective element of these systems leads to non-transparency, wastage of time of the civic personnel in cumbersome processes, and above all difference of opinion leading to excessive litigations, and thus wastage of efforts of civic personnel and fund in fighting the court cases.
    In this situation to ensure a dynamic process of a transparent tax administration a decision has been taken to switch over the system of valuation of properties in Urban Local Bodies to Unit Area System of assessment.

Design of Unit Area System:

  • One time in-house work in every five years to bring equality at macro level at first.
  • Determination of valuation by an independent Committee namely the Municipal Valuation Committee.
  • Division of all wards in varying number of sub-wards/ blocks depending on basic infrastructure, in broad based manner, after considering the views of general citizens.
  • Categorization of such sub-wards/ blocks on the basis of available infrastructures and defined factors.
  • Grouping the sub-wards/ blocks of identical and similar in nature of whole area of the Urban Local Body in same set.
  • Putting Base Unit Area Value, i.e. Base annual value per sq. ft. to properties within a grade of sub ward/block with the help of revenue simulation taking into consideration the existing revenue base. In this way similarly located all properties will have similar Base Unit Area Value. This will be publicly communicated.
  • Fixing predefined and publicly proclaimed multiplicative factors (from 0.5 to 8) to determine the actual value of the property, by increasing or decreasing the Base Unit Area Value depending of condition of individual property. For fixing multiplicative factors the mandatory parameters of type of location, use, age structure and occupancy status shall bed considered, and apart from this there exist provision for considering such other parameters as may be considered necessary by the Municipal Valuation Committee.
  • Publication of the scheme, after considering the views of general citizens, for the purpose of specifying Base Unit Area values of lands and buildings under all classes of areas within the Corporation.
  • In this system the annual value of a land or building shall be the amount arrived by multiplying the total area of land and/ or building by the Base Unit Area value of such land and/ or building.
  • A percentage of such annual value shall be fixed as the annual Property Tax.
Assessment of Premises
Assessment of Property Tax in Kolkata :

Unit Area Assessment (UAA) System for determination of property tax is commenced, at present, for the Ward Number 001 to 141, with the final publication of Scheme in Official Gazette on 1st April, 2017. From 1st quarter of 2017, all properties within such wards have come under the new system and are required to be reassessed as per provisions of UAA System. However, if there is any assessment pending for the previous effective quarters with respect to any property, such assessment may be completed under the Annual Rateable Value (ARV) method of assessment that was prevalent prior to final publication of Scheme. A brief idea of two different systems for determination of property tax is as follows:-

(A) Annual Rateable Value (ARV) method of assessment of Property Tax : 

• Determination Of Annual Valuation(AV) :

a) If the property is used by the owner himself, “Reasonable Rental Method” is applied, i.e. from our database and comparing with similar premises, expected reasonable rent per month, which the property is capable of fetching, is determined. Then it is multiplied by 12 to arrive at Annual Rental Value and a 10% statutory allowance for maintenance is subtracted to arrive at the Annual Valuation (rounded off to nearest ten rupees)

b)If the property is tenanted, the actual monthly rent (including service charges and / or maintenance charges, if any) is multiplied by 12 less 10% statutory allowance to arrive at the Annual Valuation.

c) In case of Theatre/Cinema halls 7.5% of the Gross Annual receipts (excluding taxes) is fixed as Annual Value for the Hall.

d) In case of vacant unconstructed land, the Annual Value w.e.f 3rd August 2008 – 2009 will be 2.5% and 7% of estimated market value for land measuring upto and above 5 cottah respectively. For effective assessment period before March 2008-09, the rate is 7% for all cases irrespective of the land area.

• Rates of Taxes :

a) If the Annual Valuation as fixed above, does not exceed Rs.600/-, the rate of tax is 11% of the Annual Value i.e. if A.V. is Rs.500/- the property tax per year will be Rs.55/- plus Howrah bridge tax . To get quarterly gross amount of the property tax, annual property tax, is divided by 4 and rounded off to the nearest rupee. Rebate @ 5% on the quarterly tax is allowed if deposited within specified date. Net amount of property tax after rebate will also be rounded off to the nearest rupee.

b) If the Annual Valuation as fixed above, exceeds Rs.600/- but does not exceed Rs.18000/, annual tax rate is the percentage of the A.V., worked out by dividing the A.V. of the premises by 600 and adding 10 to the quotient, the sum thus worked out being rounded off to the nearest first place of decimal. Say, if A.V. of premises is Rs.1300/-; such quotient will be 1300/600=2.16% and property tax rate will be 2.16+10=12.2% (rounded off). So gross tax of such property per year will be Rs.158.60/- plus Howrah Bridge tax @ 0.5% or 0.25%, as the case may be, of AV. To get quarterly gross amount of tax this should be divided by 4 and rounded off to the nearest rupee. A rebate of 5% or the quarterly tax is allowed if deposited within specified date. Net amount of property tax after rebate will also be rounded off to the nearest rupee.

c) If the Annual Valuation as fixed above exceeds Rs.18000/-, the rate of tax is 40% of the Annual Value. That is if A.V. is Rs.20000/- the property tax per year is Rs.8000/- plus Howrah Bridge tax @ 0.5% or 0.25%, as the case may be, of A.V. and a further rebate of 5% of the quarterly tax is allowed, if deposited within specified date.

d) Howrah Bridge Tax percentage is 0.5% (for Ward No.1-65, 68-88, 90), 0.25% (for Ward No.66,67,89,91-100, 115-141), 0% (for Ward No.101-114).

e) In case of general flats / apportioned units, tax rate percentage is calculated on a cumulative Annual Value of all the flats within that premises and should be applied on individual Annual Value for respective flats to get the amount of gross property tax.

f) For Bustee and some statutory organizations, the rate of property tax is different. For Bustee the maximum tax rate is 18% on Annual Value.

g) For commercial/non-residential property, normally a surcharge @ not exceeding 50% of property tax is applicable to such property or portion of such property under non residential or commercial use and is levied additionally.
h) No property tax is payable if AV does not exceed Rs.300 (three hundred).

• Hearing on Proposed Annual Value :

There is no system of Self-Assessment in this method and generally Kolkata Municipal Corporation, on proposing any Annual Value gives hearing to the tax-payers and finally determine the Annual Value and property tax after hearing process is over.

(B) Unit Area Assessment (UAA) System of determination of Property Tax :
•  As a first step to implement Unit Area Assessment System Ward No.001 to 141 have been subdivided into 293 blocks and categorized under seven categories from ‘A’ to ‘G’. Final Notification on Blocks and Categories defining boundaries of such blocks has already been published in Official Gazette.

•  Corporation has also published the ‘Scheme’ for UAA System in Official Gazette on 1st April, 2017 that comprises the following :

1. Base Unit Area Value i.e. Annual Value per sq.ft. of covered space of building or land comprising building or any vacant land of    respective categories.
2. Multiplicative Factors, which are property specific.
3. Rate of property Tax
4. Taxable vacant land when there is a construction
5. Manner relating to submission of Self Assessment Form

•  Also, on 1st April, 2017, Final Notifications on following Rules & Regulations have been published in Official Gazette :

1. The Kolkata Municipal Corporation (Self-Assessment System, Manner and Forms) Rules, 2017.
2. The Kolkata Municipal Corporation (Covered Space) Regulations, 2017.
3. The Kolkata Municipal Corporation (Unit Area Assessment – Tax Capping) Regulations,2017.

For having a basic idea on the new system, please refer to page Brief Account of Unit Area Assessment System.

For further detail please refer to
Final Notification on Blocks & Categories,
Scheme for Unit Area Assessment System &
Relevant Rules & Regulations with regard UAA system as referred above.

• Self-Assessment of Property Tax :

As per provision of the Scheme and relevant Rules and Regulations as well as provisions of the Kolkata Municipal Corporation Act, 1980 (as amended time to time), the owner or lessee or sublessee or person liable to pay property tax of a property is required to submit Return in duly filled in Self-Assessment Form (SAF) within sixty days from date of publication of Scheme. Forms are available from website or helpdesks of different offices of Assessment-Collection departments common collection centres & e-Kolkata citizens service Centres. Forms can be submitted offline at such offices and demand under UAA will be generated after entry of data given in the form. There is also provision of online submission of SAF and payment in online mode.
The forms so submitted will be checked later randomly and property tax will be calculated by the Kolkata Municipal Corporation by its own mechanism. In case forms are not submitted in time, KMC will assess the property suo-motu. In both the cases, before final determination of Annual Value and Property Tax by the Municipal Commissioner or his representative, a one month notice will be served to the tax-payer allowing him to give objection, if any. In case there is any objection, submitted within stipulated period, notice for Hearing will be issued and the tax will be determined after hearing process is over.
It will be pertinent to note here that Annual Valuation (AV) of different portions of a property having single assessee no. with different types of age or occupancy or structure or usages are to be assessed separately for respective portions in the relevant format mentioning them in different rows. Thereafter, on the total Annual valuation the payable tax is to be calculated as per relevant tax rate. Annual Valuation of Car parking space (if any) is also to be assessed separately as per relevant MF and added to the total Annual Value for calculation of payable tax.
In case of a property/flat/unit/apartment in a multiple flat building with different flat owners, proportionate common area for individual flat is to be calculated and assessed separately as per relevant MF and added to the Annual Value of the flat(s)/units(s)/apartment(s) for deriving the total annual Value for calculating payable tax as per relevant tax rate.

• Please note that for location MF road width is the criterion. Road width includes footpath and carriageway. 

• Continuance of making payment of existing property tax under the old (ARV) System: So long the property tax under UAA system is not finally determined and paid, the tax-payers are required to make payment of property tax so determined under the old (ARV) system. Property Tax Bill under ARV System for the year 2017-18 is already raised and tax-payers are requested to make payment of such tax. If demand against all four quarters are paid at a time within rebate period of first quarter, additional 5% rebate will be allowed for 2nd, 3rd & 4th quarters, in addition to normal rebate of 5%.
If there is any difference in property tax under new system compared to the existing demand under ARV system, so paid for the year 2017-18 or so; the same will be duly adjusted or taken care of at the time of raising demand under new system.

• How to learn outstanding dues in respect of Property Tax:
Please procure an LOI from Computer Section of respective units of Assessment Collection Department and get it verified from the concerned division/ unit and if the LOI is found correct that is your O/S. [see sample]

• Functions of Municipal Assessment Tribunal : 
Each assessee is given liberty to appear before a Hearing Officer if there is any objection against the valuation proposed by KMC (Section 184(3), 184(4), 185, 186 and 187 of KMC Act, 1980 may be referred). Hearing Officer determines such objections and fixes the Annual Valuation in respect of the premises of the assessee as per provisions under section 188 of KMC Act, 1980. The assessee is also given a further chance to appeal against such valuation as determined under section 188 if he prefers to. He can appeal before Municipal Assessment Tribunal (under section 189) consisting of a Chairman and a number of other members. However no appeal will be entertained by the said tribunal if the disputed tax is not deposited. Provisions of Limitation Act, 1963 is applicable relating to such appeal before tribunal. Valuation as determined by the Tribunal is final and no proceeding shall lie in any Civil Court against the valuation as determined by the Tribunal.

• Information sheet for recovery of Property Tax through other penal measures:
Sections 217-221B, 223, 225 and Section 275 -(1)(aa) of Calcutta Municipal Act, 1980 deals the situation as mentioned above.
a) Provision for interest and penalty for non-payment of property tax (Section 217)
b) Issuance of Warrant of Distress and sale of movable property (Sections 220-221)
c) Attachment and sale of immovable property (Section 221A and sale of property distrained or attached (Section 221 B)
d) Recovery under Bengal Act III, 1913 (Section 223)
e) Attachment of rent of the tenant(s) [Section 225]
f) Disconnection of water supply line (Section 275 –(1) (aa))

The West Bengal Valuation Board Act, 1978

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The West Bengal Valuation Board Act, 1978

This Act was first enacted as the West Bengal Central Valuation Board Act, 1978 in order to set up a Central Valuation Board for valuation and assessment of properties within the Urban Local Body areas for imposition of property tax. Prior to enactment of this Act the valuation of buildings in municipal areas were used to be done either by the employees of the Urban Local Body concerned, or by the assessors appointed by the Municipalities. In this situation this Act was enacted with a view to constitute a Central Valuation Board to ensure uniformity in valuation, objectivity in assessment and securing a higher yield of municipal revenue throughout the State. Later the name of the Act has been changed to the West Bengal Valuation Board Act, 1978.

Two rules have been framed under the said Act, which are as follows:

  1. The West Bengal Valuation Board (Valuation of Lands and Buildings) Rules, 1984.- In this rule the manner of preparation of valuation list, procedure for handling review applications have been detailed.
  2. The West Bengal Valuation Board (Registration of Valuers and Surveyors) Rules, – In this rule the detailed procedure for registration of Valuers and Surveyors, for the purpose of assisting the Valuation Board in their work, have been stated.

 


The West Bengal Valuation Board Act, 1978

West Bengal Act 57 of 1978

[Dated 5th February, 1979]


1. Short title, extent and commencement.
 – (1) This Act may be called the West Bengal [****] Valuation Board Act, 1978.

(2) It extends to the whole of West Bengal.

(3) It shall come into force in such area and on such date as the State Government may, by notification, appoint and different dates may be appointed for different areas.Assent of the Governor was first published in the Calcutta Gazette, Extraordinary of the 5th February, 1979.

An Act to provide for a [****] Valuation Board and Valuation Authorities for the purpose of valuation of lands and buildings in West Bengal.Whereas it is expedient to establish a [****] Valuation Board and Valuation Authorities for the purpose of valuation of lands and buildings in West Bengal;It is hereby enacted as follows :-

2. Definitions. – (1) In this Act, unless there is anything repugnant in the subject or context,-[***********]

[(aa) “Administrator or Board of Administrators” has the same meaning as in sub-section (3) of section 14 of the West Bengal Municipal Act, 1993.]

[***********]

(b) “Board” means the [****] Valuation Board established under section 4;

[(bb) “Board of Councillors” means the Board of Councillors of a Municipality;]

[***********][***********]

[(e) “Councillor” means a Councillor of a Corporation or Municipality;]

[***********]

[(f) “Corporation” means the Kolkata Municipal Corporation constituted under the Kolkata Municipal Corporation Act, 1980, the Howrah Municipal Corporation constituted under the Howrah Municipal Corporation Act, 1980, and other Municipal Corporations constituted under the West Bengal Municipal Corporation Act, 2006;]

(g) “Fund” means the [****] Valuation Board Fund referred to in section 20;

[(h) “Howrah” means Howrah as defined in the Howrah Municipal Corporation Act, 1980;]

(i) “Land or building” [includes a bustee];

[(ii) “municipal area” includes a notified area;]

[(j) “Municipality” means a Municipality as defined in the West Bengal Municipal Act, 1993, and includes a Notified Area Authority;]

(k) “Notification” means a notification published in the Official Gazette;

[(kk) “Property tax” means the property tax on the annual value of lands and buildings determined and leviable under the Howrah Municipal Corporation Act, 1980, [the Calcutta Municipal Corporation Act, 1980,] [the West Bengal Municipal Corporation Act, 2006,] or the West Bengal Municipal Act, 1993, as the case may be;]

(l) “prescribed” means prescribed by rules made under this Act;

(m) “regulations” means regulations made under section 29;

[************]

[(n) “valuer-surveyor” means the valuer-surveyor Grade I, or the valuer-surveyor Grade II, registered as such under section 8B.]

[(2) Words and expressions used in this Act but not defined shall have the same meaning as in the Howrah Municipal Corporation Act, 1980 or the Calcutta Municipal Corporation Act, 1980 or [the West Bengal Municipal Corporation Act, 2006,] or the West Bengal Municipal Act, 1993.]

3. Act to override other laws. – With effect from the date [of notification referred to in sub-section (1) of section 9,] the [provisions of the Howrah Municipal Corporation Act, 1980 or the Calcutta Municipal Corporation Act, 1980] or [the West Bengal Municipal Corporation Act, 2006) or the West Bengal Municipal Act, 1993,] or any other law relating to any of the matters provided for in this Act shall be deemed, in respect of such area, to have been modified to the extent of the provisions made in this Act.

4. Establishment of the Board. – (1) The State Government may, by notification, establish, for the purposes of this Act, a Board to be called the ‘*** Valuation Board.

(2) The Board shall be a body corporate with perpetual succession and a common seal and may sue or be sued in its corporate name and shall be competent to acquire, hold and dispose of any property, both movable and immovable, to enter into contracts and to do all things necessary for the purposes of this Act.

5. Members of the Board. – (1) The Board shall consist of a Chairman and [four] other members to be appointed by the State Government.

(2) The Chairman shall be a person who is or has been an officer of the State Government [not below the rank of Secretary including ex officioSecretary [***].]

[(3) [The four other members shall include the Director of Local Bodies, Government of West Bengal, who shall be the ex officio member of the Board, and such other officers of the State Government or non-official experts] having knowledge and experience in the field of Judiciary, Engineering, Valuation and Assessment of Properties, Economics or Social Science as the State Government may determine.]

(4) The Chairman and the other members of the Board shall hold office for such period not exceeding [four years] as the State Government may determine and the terms and conditions of their service, including salaries and allowances shall be such as may be prescribed.

[(5) The Board shall have a Member-Secretary who shall be appointed by the State Government from amongst the members referred to in subsection (3) and shall be the Chief Executive Officer of a Board.]

[5A. Validation. – Notwithstanding anything contained elsewhere in this Act, no action of the Board shall be invalid or otherwise called in question merely on the ground of the existence of any vacancy (initial or subsequent) in the office of the members of the Board.]

[6. Officers and employees. – (1) The Board may create such posts of officers and employees and fill up such posts as may be approved by the State Government.]

(2) The terms and conditions of service including salaries and allowances of the officers and employees appointed under sub-section (1) shall be determined by regulations.

7. Employment of staff of the State Government. – (1) The Board may take over and employ such staff of the State Government as the State Government may make available.(2) During the period of such employment all matters relating to pay, allowances, leave, retirement, pension, provident fund and all other terms and conditions of service of the staff so made available and taken over shall be regulated by the West Bengal Service Rules or such other rules on the subject as may, from time to time, be made by the State Government for its employees.(3) Subject to the provisions of sub-sections (2) and (4) every person so taken over and employed shall be subject to the provisions of this Act and the regulations.(4) All permanent Government employees taken over and employed under sub-section (1) shall have a lien on their post in the service of the State Government and the period of their service under the Board shall, on reversion to the service of the State Government, be counted for the purpose of their promotion, increments, pension and other matters relating to their service.

[8. Expenditure incurred on account of salaries and allowances including contingencies. – (1) The expenditure incurred by the Board for meeting the salaries and allowances including contingencies of the Chairman and the Member-Secretary serving under the Board shall be defrayed out of the Fund to be provided by the State Government.(2) The expenditure incurred by the Board for meeting the salaries and allowances including contingencies in respect of all the officers and employees serving under the Board shall be defrayed out of the Fund to be provided by the State Government.(3) The expenditure towards contingencies for maintaining normal financial activities shall be met out of the Fund so provided by the State Government.]

[8A. Maintenance of register’ of registered valuer-surveyors [Grade I and registered valuer-surveyors Grade II.]. – The Board shall maintain in the prescribed manner a register of registered valuer-surveyors [Grade I and registered valuer-surveyors Grade II.].

[8B. Registration of valuer-surveyor [Grade I and registered valuer-surveyors Grade II.]. – Every person who possesses such qualifications as may be prescribed shall, subject to such terms and conditions, and on payment of such fee, as may be prescribed, be entitled to have his name entered [as a valuer-surveyor Grade I or valuer-surveyor Grade II] in the register of registered valuer-surveyors [Grade I and registered valuer-surveyors Grade II.].

9. Determination of valuation and its duration. – (1) The State Government shall, from time to time by notification, specify the area where, the general valuation of lands and buildings shall be made by the Board, in accordance with the [provisions of the Howrah Municipal Corporation Act, 1980 or the Calcutta Municipal Corporation Act, 1980] or [the West Bengal Municipal Corporation Act, 2006) or the West Bengal Municipal Act, 1993,] or any other law for the time being in force in such area, as the case may be [, in so far as they relate to the determination of annual valuation :]

[Provided that the Board may, in accordance with a resolution in this behalf adopted at a meeting of the Board and with the previous approval of the State Government, require any valuer-surveyor to make, subject to such conditions as may be prescribed, the general valuation of lands and buildings in the area as aforesaid or in any part thereof under the superintendence, direction and control of the Board on payment of such remuneration as the Board may determine, and every such valuation shall be deemed to have been made by the Board.]

(2) [The valuation made by the Board shall become operative with effect from the date specified in section 11] and shall remain in force in respect of such area for a period of [five years] and may be revised thereafter at the termination of successive periods of [five years] :

Provided that [notwithstanding anything contained in the foregoing provisions of this section, in Calcutta and Howrah and in any municipality,] the valuation shall remain in force in such groups of Wards and for such period as may be prescribed and such valuation may be revised thereafter at the termination of successive periods of [five years] from the expiry of the period so prescribed:

Provided further that the valuation of lands or buildings in any area made in accordance with the provisions of [the West Bengal Municipal Act, 1993] or any other law, shall remain in force for the period for which it was made under [the West Bengal Municipal Act, 1993] or any other law, as the case may be.

[(3) Notwithstanding anything contained in sub-sections (1) and (2), if, during the currency of any period referred to in sub-section (2), any new building is erected, or any existing building is reconstructed or substantially altered or improved, in any area, the determination of valuation of such premises shall be subject to the same criteria as has been fixed by the Board for such premises, and its valuation shall be covered by such procedure as may be determined by the Board for its immediate valuation with prior mandatory filing of statement of particulars under section 16 by the owner or occupier. The valuation so made shall remain in force from the quarter intimated by the Municipality or Corporation for the unexpired portion of the period referred to in sub-section (2).

 [***********]

(4) The Corporation and [the Board of Councillors] shall in each year and within such time as may be prescribed send to the Board a list of all new buildings erected and also all existing buildings reconstructed or substantially altered or improved within their respective jurisdiction [together with suggested valuation in terms of Board’s guidelines for finalization and approval of valuation by the Board].

9A. Publication of draft valuation list. – (1) When the valuation under section 9 of the lands and buildings in any area has been completed, the Board shall cause such valuation list and the amount of property tax thereon to be entered in a list.]

(2) The Board shall publish the draft valuation list, prepared under subsection (1), in such manner, as may be prescribed and shall specify a date within which an application for objection to the draft valuation list may be filed.

(3) After the expiry of the date specified in sub-section (2) and within such period thereafter as may be prescribed, the objection of any entry in the draft valuation list shall be determined after giving the applicant an opportunity of being heard [************.]

[(4) The Board shall, with the approval of the State Government, appoint such officer of officers, having such experience and qualification, and on such terms and conditions as the State Government may by order determine, to hear and determine the objections to the draft valuation list, and the objection shall be determined in such manner as may be prescribed.][************]  

Explanation.-For the purposes of this section the term ‘previous valuation’ means the Valuation made under the Bengal Municipal Act, 1932 and in force on the date immediately before the commencement of the West Bengal Municipal Act, 1993, and under the West Bengal Municipal Act, 1993.

10.[************]

[11. Publication of final valuation list. – When the application under sub-section (2) of section 9A, if any, has been determined, the Board shall prepare a final valuation list and shall give public notice of the place or places where such list may be inspected, and such valuation list shall be the final valuation list, and shall become operative from the date or quarter succeeding last date or quarter upto which the previous valuation list was valid.]12.[************]

[12A. Alteration or amendment of [**] valuation list. – (1) Notwithstanding anything contained in section 11, the Board may at any time before[the date specified for filing the applications under sub-section (2) of section 9A] and for reasons to be recorded in writing, direct any alteration or amendment of the [**] valuation list-

(a) by inserting therein the name of any person whose name ought to be inserted; or

(b) by inserting therein any land or building previously omitted together with the valuation thereof; or

(c) by striking out the name of any person or any land or building not liable for payment of [property tax; or]

(d) by increasing or decreasing the annual valuation of any holding which, in the opinion of the Board, has been substantially undervalued or over-valued by reasons of fraud, misrepresentation, [mistake, error or subsequent construction or inadvertence;] or

[(e) by correcting any patent error or omissions.]

SEC 13-15 [*****]

16. Owner or occupier to file statement. – Every owner or occupier of any land or building shall file a statement before the Board in such manner and within such time and specifying such particulars as may be prescribed.

[18. Power to enter into land or building. – [(1) Any officer of the Board, or any person or an Agency authorised by the Board in this behalf, in writing, may enter into any land or building and make an inspection or survey, or take measurements, thereof for the purpose of valuation.](2) If such entry is refused, or any objection to such entry is made, the officer authorised under sub-section (1) may give notice in writing to the owner or the occupier of such land or building of his intention to enter into such or land building, and the owner or the occupier of such land or building shall, upon such notice being duly served on him, extend all facilities as may reasonably be expected of him to such officer [, person or the agency, as the case may be,] for entering into such land or building and for making inspection or survey, or for taking measurements, thereof as the case may be, for the purpose of valuation.]

17. Production and inspection of accounts and documents. – The Board or any of its officer authorised by the Board may, subject to such conditions as may be prescribed, require the owner or the occupier of any land or building to produce before the Board or such officer within such time as the Board or such officer may fix any accounts, registers or documents or to furnish any information relating thereto as may be considered necessary for the purpose of this Act and the owner or the occupier shall comply with such requisition.

19. Corporation and [Municipalities] to make payment to the Board. – (1) [The Calcutta Municipal Corporation, the Howrah Municipal Corporation,] [the Siliguri Municipal Corporation, the Asansol Municipal Corporation, the Chandernagore Municipal Corporation, the Municipality or other local authority of any area,] as the case may be, in respect of which notification under sub-section (1) of section 9 has been made, [may in each year pay] to the Board such proportion of the expenditure incurred by the Board on account of the valuation and assessment, as the annual value of [holdings in Calcutta, Howrah,] [Siliguri, Asansol or Chandernagore or within the jurisdiction of the Municipality or the other local authority,] as the case may be, bears to the aggregate of the annual value of the total number of holdings in the concerned area.(2) The Board shall calculate the amount payable by the Corporation, [the Municipality or the local authority] under sub-section (1) and may require the concerned body to pay the amount withing such time as may be prescribed.(3) If the amount is not paid within the prescribed time, the Board may refer the matter to the State Government and the State Government may pay the amount to the Board after deducting the same from any grant payable by the State Government to the Corporation, [the Municipality or such other local authority,] as the case may be.

[19A. Functions of the Board. – (1) The Board may render such advice on valuation and rating to a Corporation or a [Municipality] as the State Government may, from time to time, require it to do or as the Board may consider necessary for carrying out the purposes of the Act.

(2) The Board may also discharge such other functions in the field of valuation including development of expertise in valuation of land and building and training of [officers and employees of a Municipality] as the State Government may direct or as the Board may consider necessary for carrying out the purposes of this Act.]

20. Fund of the Board. – (1) The Board shall have a fund to be called the Central Valuation Board Fund to which shall be credited-

(a) such moneys as may be paid to the Board by [the Corporations, the Municipalities and the other local authorities] under section 19, and

(b) such other moneys as may be paid to the Board by the State Government or any other authority or agency.

(2) All moneys received by the Board shall be deposited in the [State Bank of India] or in one or more nationalised banks.

[21. Grants or loans to the Board. – The State Government may extend grants or loans to the Board on such terms and conditions as that Government may determine.]

22. Expenditure and accounts. – [(1) The Board shall have the same financial powers as are exercisable by the Secretary of a Department of the State Government. Matters beyond such financial powers shall be referred by the Board to the State Government for decision.][(2) The Board shall keep accounts of all receipts and expenditure, and prepare annual accounts, in a regular manner as per standard accounting norms or in such manner as may be prescribed.]

23. Audit. – (1) The Board shall cause its accounts to be audited annually by an auditor to be appointed by the State Government and the auditor so appointed shall have the right to demand the production of books, accounts, documents and other papers of the Board.[(2) The annual accounts prepared as per provisions of sub-section (2) of section 22 shall be placed to the auditor for audit. As soon as the accounts have been audited, the Board shall send a copy thereof together with a copy of the report of the auditor to the State Government.](3) The Board shall comply with such directions as the State Government may, after perusal of the report of the auditor, think fit to issue in this behalf.(4) The Board shall pay out of the Fund such sum as may be determined by the State Government by way of fees [, if any,] for such audit.

24. Budget. – (1) The Board shall prepare each year in such form and within such time as may be prescribed a budget in respect of the financial year next ensuing, showing the estimated receipts and expenditure and shall forward a copy of the same to the State Government for approval.(2) The State Government may, in according such approval, make such additions, alterations and modifications therein as it thinks fit:Provided that before making such additions, alterations or modifications the State Government shall give the Board an opportunity to express its views thereon within such period as may be prescribed.

25. Penalty. – Any person who-

(a) fails to file the statement referred to in section 16 within the prescribed period, or files a false statement, or

(b) fails to produce the accounts, registers or documents or to furnish the information relating thereto when so required under [section 17, or]

[(c) fails to comply with the provisions of section 16,]

shall be punishable with simple imprisonment which may extend to six months or with fine which may extend to one thousand rupees or with both and when the offence is a continuing one, with a daily fine not exceeding fifty rupees per day during the period of continuance of the offence.

26. Employment of staff. – The Board may employ such members of the staff [of the Corporation or the Municipality or any other local authority, as the case may be,] having jurisdiction over the area specified in the notification under sub-section (1) of section 9, [for the purpose of collection of field data for determining valuation of properties under this Act,] on such terms and conditions of service as may be determined by regulation :Provided that the terms and conditions of service of the persons so employed shall not be varied to their disadvantage :[Provided further that notwithstanding anything contained in this section, the Board may engage private agency or any other person with sufficient experience, on such terms and conditions as the State Government may, by order, determine, in the work of valuation of properties.]

[26A. Delegation of powers and functions by Board. – [(1) The Board may delegate any of its powers and functions including financial powers to the Chairman of the Board except the power under sub-section (1) of section 6.](2) The Board may also delegate any of its powers or functions to any other officer of the Board by a resolution adopted by it in this behalf.]

27.[************]


28. Power to make rules.
 – (1) The State Government may, by notification, make rules for carrying out the purposes of this Act.(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the matters which may be or is required to be prescribed.

[27A. Members, officers and employees to be public servants. – Every Member of the Board or every officer or employee of the Board shall, when acting or purporting to act under the provisions of this Act, be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.]

29. Power to make regulations. – (1) The Board may, with the previous approval of the State Government, make regulations consistent with the provisions of this Act and the rules made thereunder for carrying out the purposes of this Act.(2) The State Government may, in according such approval, make such additions, alterations and modifications therein as it thinks fit:Provided that before making such additions, alterations or modifications the State Government shall give the Board an opportunity to express its views thereon within such period not exceeding two months as may be specified by the State Government.(3) All regulations approved by the State Government shall be published in the Official Gazette.

[30. Validation and saving. – Notwithstanding anything contained in this Act, with effect from the date of coming into force of the West Bengal Valuation Board (Amendment) Act, 2009, any property tax levied on annual value of land and building, or any valuation published under this Act or any assessment list published under the West Bengal Municipal Act, 1993, or the West  Bengal Municipal Corporation Act, 2006 shall remain in force till a new valuation list is brought into effect.]


SUPREME COURT CASES

Bidhannagar (Salt Lake) Welfare Vs Central Valuation Board and Ors [SC 2007]

Hamant Yashwant Dhage Vs. State of Maharashtra and Others [SC 2016 FEBRUARY]

KEYWORDS:-INVESTIGATION TO BE COMPLETED WITHIN TIME FRAME MANNER -DIRECTION BY MAGISTRATE-

Capture

  • Registration of an F.I.R. involves only the process of recording the substance of information relating to commission of any cognizable offence in a book kept by the officer incharge of the concerned police station.
  • The police should conduct a thorough investigation and complete the same within a reasonable time period such as six months and submit its final views to the learned Magistrate through a proper report.

ACTS:- SECTION 163(3) CR.P.C

DATED:-February 10, 2016

SUPREME COURT OF INDIA

Hamant Yashwant Dhage Vs. State of Maharashtra and Others

[Criminal Appeal No. 110 of 2016 arising out of Special Leave Petition (CRL.) No. 3251 of 2012]

O R D E R

SHIVA KIRTI SINGH, J.

1. We have heard learned counsel for the parties at some length.

2. Leave granted.

3. Though the matter has remained pending for long, fortunately the core issue involved for our consideration is a very simple one.

4. The appellant was respondent in two Criminal Appeals bearing Numbers 766 and 767 of 2010 arising out of a common judgment of the High Court of Bombay dated September 8, 2009 in CRL.W.P. No. 2482 of 2008.

5. This Court disposed of both the appeals vide order dated April 12, 2010. It did not approve the action of High Court in entertaining writ petitions for change of investigating officer. The relevant parts of that order read as follows :-

“We are of the opinion that if the High Courts entertain such writ petitions, then they will be flooded with such writ petitions and will not be able to do any other work except dealing with such writ petitions. Hence, we have held that the complainant must avail of his alternate remedy to approach the concerned Magistrate under Section 156(3), Cr.P.C. and if he does so, the Magistrate will ensure, if prima facie he is satisfied, registration of the first information report and also ensure a proper investigation in the matter, and he can also monitor the investigation.

In view of the settled position in Sakiri Vasu’s (supra), the impugned judgment of the High Court cannot be sustained and is hereby set aside. The concerned Magistrate is directed to ensure proper investigation into the alleged offence under Section 156(3), Cr.P.C. and if he deems it necessary he can also recommend to the S.S.P./S.P. concerned change of the investigation officer, so that a proper investigation is done.

The Magistrate can also monitor the investigation, though he cannot himself investigate (as investigation is the job of the police. Parties may produce any material they wish before the concerned Magistrate. The learned Magistrate shall be uninfluenced by any observation in the impugned order of the High court. The appeals are allowed in the above terms. In view of the aforesaid order, no orders need be passed on the application for intervention and it is disposed of accordingly.”

6. The appellant, in the capacity of complainant, approached the learned Judicial Magistrate F.C. Court No.2, Pune who took notice of this Court’s order and issued several directions in RCC No. 0402459/2008 as is evident from its order dated February 17, 2011, including relevant directions to the investigating officer. But unfortunately the learned Judicial Magistrate came to a wrong conclusion that in the absence of any specific direction of this Court, the prayer of the complainant for registration of F.I.R. had to be rejected. The complainant then approached the High Court of Bombay through Criminal Writ Petition No. 3009 of 2011 which was disposed of by the impugned order dated February 13, 2012. The High Court declined to issue a direction for registering an F.I.R. by taking the view that it was open for the petitioner to seek clarification/modification of the order from the apex Court.

7. Mr. Ram Jethmalani, learned senior counsel appearing on behalf of the appellant argued with vigor that investigation into a serious case has been unnecessarily delayed at the instance of vested interests and hence this Court should now take a strong view and in the light of earlier order dated April 12, 2010, the police should be directed to treat the pending case as a police case in view of implications arising from Section 156(3) of the Criminal Procedure Code (in short ‘the Code’).

He further submitted that without wasting much time, the police should conduct a thorough investigation and complete the same within a reasonable time period such as six months and submit its final views to the learned Magistrate through a proper report.

8. Mr. P. Chidambaram, learned senior counsel appearing for private respondents did not oppose the aforesaid prayer. In fact, according to his submissions, the police could be asked to complete the investigation even in a shorter span of time and submit its final views to the Magistrate without wasting time on the formality of registration of F.I.R.

9. Mr. Arvind Sawant, learned senior counsel appearing on behalf of the State of Maharashtra has drawn our attention to copies of various reports submitted by the investigating officer. He expressed his concurrence with the view that police may be directed to submit its final opinion in the matter through an appropriate report within a reasonable time.

10. In view of the aforesaid broad consensus amongst the counsel for the various parties, it is not necessary for us to go deeper into the relevant issue of law as to whether the earlier order of this Court dated April 12,2010 warranted registering of F.I.R. by the police before commencing investigation. But we would like to only indicate in brief the law on this subject expressly stated by this Court in the case of Mohd. Yousuf versus Afaq Jahan (Smt.) and another, (2006) 1 SCC 627.

This Court explained that registration of an F.I.R. involves only the process of recording the substance of information relating to commission of any cognizable offence in a book kept by the officer incharge of the concerned police station.

In paragraph 11 of the aforementioned case, the law was further elucidated by pointing out that to enable the police to start investigation, it is open to the Magistrate to direct the police to register an F.I.R. and even where a Magistrate does not do so in explicit words but directs for investigation under Section 156(3) of the Code, the police should register an F.I.R. Because Section 156 falls within chapter XII of the Code which deals with powers of the police officers to investigate cognizable offences, the police officer concerned would always be in a better position to take further steps contemplated in Chapter XII once F.I.R. is registered in respect of the concerned cognizable offence.

11. In our considered view, the same was the import of this Court’s order passed on April 12, 2010. In the light of the said earlier order; the legal position noticed above and the stand of the parties, we have no difficulty in directing the concerned Magistrate and the police officer to rectify their mistake by ensuring registration of an appropriate F.I.R. The delay in lodging of such F.I.R. occurring after April 12, 2010 shall not have any effect on the investigation already carried out by the investigating officer(s). We also direct the police to complete the investigation fairly and in accordance with law at an early date, preferably within six months. On receipt of appropriate report from the police on conclusion of investigation, the learned Magistrate will deal with the matter strictly in accordance with law on the basis of materials available on record without being influenced by orders passed by different Courts.

12. The appeal is allowed to the aforesaid extent.

 (M.Y. EQBAL)

 (SHIVA KIRTI SINGH)

New Delhi,

February 10, 2016