HARBANSLAL MALHOTRA & SONS PVT. LTD.versusKOLKATA MUNICIPAL CORPN. & ANR.

                             [20 l 7] 11 S.C.R. 526



A           HARBANSLAL MALHOTRA & SONS PVT. LTD.
                                       v.

                 KOLKATA MUNICIPAL CORPN. & ANR.
                       (Civil Appeal No. 3337 of2007)
B                           SEPTEMBER 05, 2017
       [R. K. AGRAWAL AND ABHAY MANOHAR SAPRE, JJ.J
          Calc1111a A111nicipol Co1yJoration Act, 1980 - ss.174 and 178
     Tax on the premises - Annual valuation - Derermination of -
c AJJpella11t is the 01v11er of' the pre111ises. c:unsisting of ra·a-storey
  building and some land appurtenant there10 - Assessing Officer
  determined the annual rn/ue of the premises, for the assessment
  year (1988-89) (3"' quarrer} as Rs.59.4001- and for the assessment
  year (1994-95) (3"' quarter) as Rs.4.25,61101- - Aggrieved. appellant
  (assessee} filed appeals before Tribunal. which upheld the valuation
D of Rs.59,4001-, however, reduced the annual i•aluation of
  Rs. 4, 2 5, 6001- to Rs. 75. 4001- in accordance with procedure
  prescrihed in s.174(1) - High Court held that t/1e Tribunal was not
  right in making an assessment of the premises by clubbing land and
  building, it should have been done separately }or determining their
  respective annual value uls. 174(1) and (2) of the Act - On appeal.
E
  held: s.174 deals with two types of assessment .for determining the
  annual value of land or building - One is in relation to the "land
  on which the building is built", it is govemed by sub-section(/} of
  s.174 and the other is in relation to the "open land", i.e.. the "land
  on which no building is built", it is govemed by suh-section (2) of
F s.174 - In case of s.174(1), the assessing authority is required to
  take land and building as "single unit" for determination of its
  gruss annual rent lVhich is reaso11ablJ expecteli tu /'etch at the ti111e
                                            1



  <Jl assessmellt fi'o11' year ro year - It is also clear fi'om s.l 7S(2)(i)
  and (ii}, which provides that every huilding together with the site
  and the land appurtenant therero shall be assessed as a "single
G
  unit" -- s.174(/) and (2) operare in separate field. bolh cannot be
  cluhhed jor determination of the gross annual remal value of land
  or building - When legislature itself has carved out two categories
  (}(cases namely, (I} "land or !wilding" (2) "open land with no
  building thereoll" and has accordingly provided different rates and
H
                                      526
HARBANSLAL MALHOTRA & SONS PVT. LTD. v. KOLKATA                        527
              MUNICIPAL CORPN.

different method< of assessment, it does not appear logical to club    A
both the categories of cases - Tribunal followed proper procedure
by applying s.174(1) jiJr determining the gross annual value - Order
of the Tribunal restored.
      Interpretation of Statutes - Tax Laws - Held: It is a settled
rule of interpretation in relation to tax laws that a machinery B
provision which enables the assessee to avail of a concession or
benefit conferred by substantive provision in the Act, such provisions
are required to be constn1ed liberal~v.
      Allowing the appeal, the Court
      HELD: I.I Reading of Section 174 of the Calcutta Municipal c
Corporation Act, 1980 shows that it deals with two types of
assessment for determining the annual value of land or building.
One is in relation to the "land on which the building is built" and
the other is in relation to the "open land", i.e., the "land on which
no building is built". So far as former is concerned, i.e., land on D
which building is built, it is governed by sub-section (1) of Section
174 whereas so far as the latter is concerned, i.e., open land on
which no building is built, it is governed by sub-section (2) of
Section 174. [Para 13][536-G]
      1.2 In the case of former, the assessing authority is required E
to take land and building as "single unit" for determination of its
gross annual rent which is reasonably expected to fetch at the
time of assessment from year to year. To illustrate, if the building
has some appurtenant land which is exclusively used by the owner
for garden or/and parking the vehicles, such building or/and land
may fetch more rentals as compared to a building, which docs· F
not have these facilities or has very small land appnrtenant to
the building. In any case, such building and the land cannot be
separated for determining their gross annual rent. Such case,
therefore, would fall in sub-section (I) of Section 174. The annual
value and gross annual rent of such premises have to be, G
therefore, determined as per the procedure prescribed in sub-
section (1) of Section 174 of the Act. [Para 14](536-H; 537-A-B]
       1.3 The proviso to sub-section(!) of Section 174, deals
with the cases of "transfer" of the building and land. In such
case, the Assessing Officer is required to take the amount (sale
                                                                       H
528            SUPREME COURT REPORTS                      [2017] II S.C.R.


A     consideration) mentioned in the transfer deed as the basis for
      determining its annual value and then to determine the gross
      annual rem of such premises as per the procedure prescribed in
      sub-section(!) of Section 174 of the Act. [Para 15][537-C-Dj
            l.4 However, in a case where no amount is mentioned in
B     the transfer deed, the proviso says that the Assessing Officer is
      required to take the estimated market value of such premises as
      the basis and then to determine its gross annual rental as per the
      procedure prescribed in sub-section(!) of Section 174 of the Act.
      [Para 1611537-E]
c           1.5 In a situation, where the gross annual rent of any land
      or building or any part thereof cannot be easily estimated for the
      purpose of sub-section(!) of Section 174, then a procedure is
      prescribed in sub-section(4A) of Section 174 as to how gross
      annual rent of such land or building is to be determined. [Para
      171[537-FJ
D
             1.6 In all the situations set out above, the land or the
      building or any part thereof would be taken as "single unit" and
      not separate for determining the gross annual rental value. It is
      also clear from Section 178(2)(i) and (ii), which provides that every
      building together with the site and the land appurtenant thereto
E     shall be assessed as a "single unit". [Para 181[537-G)
            I. 7 However, the three provisos appended to clause(i) of
      Section 178 (2) also relates to building and the land but with
      different class of cases due to building's peculiar structure, its
      ownership and the manner in which such building or land is used
 F    by the owner. [Para 19][537-H]
             1.8 If the factors set out in any of the three provisos were
      found present in any building or land, the assessment of such
      building and land has to be done as per the procedure prescribed
      in the provisos read with Section 174(1) of the Act. [Para 20][538-
G     A)
            1.9    Now coming to the later category of the cases, i.e.,
      "open land" or "land on which no building is built", it falls in sub-
      section(2) of Section 174. It says that the annual market value of
      "open land" would be fixed at seven percent of tht estimated
H     market value of the open land. [Para 211J538-B]
HARBANSLAL MALHOTRA & SONS PVT. LTD. v. KOLKATA                         529
              MUNICIPAL CORPN.

      2.1 Section 174(1) and (2), therefore, operate in separate        A
field. Both cannot be clubbed for determination of the gross
annual rental value of land or building. In other words, both the
Sections have to be applied independently depending upon the
fact as to whether the premises is "building with land" or it is an
"open land" and accordingly their gross annual rental value would       B
be determined. [Para 22][538-C-DI
      2.2 When the Legislature itself has carved out two
categories of cases namely, (1) "'land or building" (2) "open land
with no building thereon" and has accordingly provided different
rates and different methods of assessment, it docs not appear
logical to club both the categories of cases. [Para 23][538-E]          C
      3. It is a settled rule of interpretation in relation to taxing
laws that a machinery provision which enables the assessec to
avail of a concession or benefit conferred by substantive provision
in the Act, such provisions arc required to be construed liberally.
This rule applies to the case on hand and hence, benefit of the         D
interpretation must go to the assessee rather than to the taxing
man. It also serves the purpose for which Section 174 is enacted.
[Para 24][538-E-F]
      Principles of Interpretation of Stat11to1y Interpretatio11
      by G P Singh 13" Edition - referred to.                           E

      4. The Tribunal followed proper procedure by applying
Section 174(1) for dl'lermining the gross annual value. The
Tribunal's order, therefore, deserves to be· restored. [Para
2611539-A)
                                                                        F
     CIVIL APPELLATE JURISDICTION: Civil Appeal No. 3337
of2007.
       From the final Judgment and Orders dated 28.06.2004 and
17.08.2005 passed by the Kolkata High Court in C.O. No.368 of2004
and in Review Application No.2963 of2004 respectively.
                                                                        G
      Amit Sibal, Sr. Adv., Aakash Bajaj, Namit Suri, Rahul Kumar,
Sanjecv Kapoor(for Mis Khaitan & Co.) Advs. for the Appellant.
      L.C. Agrawala, Adv. for the Respondents.

                                                                        H
530           SUPREME COURT REPORTS                         (2017] 11 S.C.R



A        The Judgment of the Cow1 was delivered by
         ABHAY MANO HAR SAP RE, J. I. This appeal is filed against
  the final judgment and orders elated 28.06.2004 passed by the High Comt
  of Kolkata in C.O. No.368 of 2004 whereby the Single Judge of the
  High Court allowed the revision filed by the respondents herein, set aside
B the judgment/order dared 18.11.2002 passed by the Mwueipal Assessment
  Tribunal (hereinafter referred to as '"the Tribunal"). Kolkata in M.A.A.
  No.170 I of 1996 and remanded the case to the Tribunal to re-determine
  the annual value of the premises and also against an order dated
  17.08.2005 passed in Review Application being Review Application No.
  2963 of 2004 in C.0. No.368 of 2004 arising out of order dated
c 28.06.2004 passed in C.O. No.368 of2004.
         2. The issue involved in the appeal lies in narrow compass.
  However, in order to appreciate the shun controversy. few relevant facts
  need mention infra.
         3. The appellant is the owner of the premises bearing No. 226/2
D situated   at A.J.C. Bose Road, Kolkata- 700020. It consists of two-
  storey building and some land appurtenant thereto (hereinafter referred
  to as "the premises"). This premises is assessed to payment of tax under
  the provisions of the Calcutta Municipal Corporation Act, 1980
  (hereinafter referred to as "the Act'").
         4. The question arose while making assessment of the premises
E
  for the Assessment Years 1988-89 (3rd quarter) and 1994-95 (3rd quarter)
  before the Assessing Authority (Hearing Officer), as to whar is the proper
  annual value of the premises and secondly, how it should be determined
  under Section 174 of the Act for payment of tax on the premises.
          5. By two orders dated 22.06.1996, the Assessing Officer (Hearing
F Officer) determined the valuation of the premises. So far as annual
  valuation for the Assessment Year ( 1988-89) (3'" quarter) is concerned,
  it was done at Rs.59,400/-, whereas so far as it was for the Assessment
   Year (1994-95) (3'" quarter) is concerned, the same was done at
   Rs.4,25,600/-.
G
          6. The appellants (asscsscc), felt aggrieved of the orders of
  Assessing Officer, filed two appeals before the Tribunal. So far as the
  order pertaining to the period ( 1988-89), valuing the premises at Rs.59,400/
  - was concerned. the appellant filed appeal being M.A.A. No. 1702 of
   1996 whereas so far as the order relating to period ( 1994-95 ), valuing
  the premises at Rs.4,25,600/-was concerned. the appellant filed appeal
H being M.A.A. 170 I of 1996.
HARBANSLAL MALHOTRA & SONS PVT. LTD. v. KOLKATA                               531
  MUNICIPAL CORPN. [ABBAY MANOHAR SAPRE, J.]

      7. Both the appeals were heard analogously by the Tribunal and          A
were disposed of by common order dated 18.11.2002. So faras M.A.A.
No. 1702/96 is concerned. it was dismissed by upholding the valuation
whereas M.A.A. No. 1701/96, was allowed in pmt wherein the Tribunal
reduced the annual valuation made by the Assessing Officer. from
Rs.4,25.000/- to Rs.75,4001-. The Tribunal held that the annual valuation     B
of the premises which was made at Rs.4,25,000/- by the Assessing
Authority was wrong and should have been done at Rs.75,400/- in
accordance with the procedure prescribed in Section 174 ( 1).

       8. The Municipal Corporation. felt aggrieved of the order of the
Tribunal, filed revision petition before the High Court. By impugned order,
the High Court allowed the revision and remanded the case to the Tribunal
                                                                              c
to re-determine the annual value of the premises. The High Comt held
that the Tribunal was not right in making an assessment of the premises
by clubbing land and building. According to the High Court, it should
have been done separately, i.e., building and land should have been
assessed separately for determining their respective annual value under       D
Section 174(1) and (2) of the Act.

      9. The owner (asscsscc), felt aggrieved of the order of the High
Court, filed this appeal by way of special leave before this Court.

     I 0. Heard Mr. Amit Sibal, learned senior counsel for the appellants     E
and Mr. L.C. Agrawala, learned counsel for the respondents.

       11. Having heard the learned counsel for the parties and on perusal
of lhe record of the case, we arc inclined to allow the appeal, set aside
the impugned order and restore that ofthc Tribunal.

      12. Part-IV of the Act deals with the subject of "Taxation".            F
Chapter-XII therein deals with the powers ofTaxation and Consolidated
Rates. Clause C provides the method as to how the determination of
Annual Valuation of any land or/and building is done. Sections 174 and
178 of the Act arc relevant for the disposal of the appeal. They need
mention infra:                                                                G
                                  Section 174

       "174. Determination of annual valuation - (1)
       Notwithstanding anything contained in the West Bengal
                                                                              H
532     SUPREME COURT REPORTS                     [20 I 71 II S.C.R.



A     premises Tenancy Act, 1956 (West Ben. Act XII of 1956)
      or in any other law for the time being in force, for the
      purpose of assessment to the consolidated rate, the annual
      value of any land or building shall be deemed to be the
      gross annual rent including service charges, if any, at which
      such land or building might at the time of assessment be
B
      reasonably expected to let from year to year, less an
      allowance of ten per cent, for the cost of repairs and other
      expenses necessary to maintain such land or building in a
      state to command such gross rent:
        Provided that where thl,re is a transfer, inter vivos, of
c     ownership of any land or building since the last preceding
      periodical assessment under Section 179, the annual value
      of such land or building shall be fixed at seven and a half
      per cent of the amount stated in the deed of transfer as
      consideration for such transfer or, if no consideration is
D     stated in such deed of transfer, at seven and a half per cent
      of the estimated market value thereof:
        Provided further that while determining the annual value
      in the case of any land ur building or portion thereof
      exclusively used by the owner for his residential purpose,
 E    the gross annual rent of such land or building or portion, as
      the case may be, shall be reduced, -
      {a) where the gross annual rent docs not exceed six hundred
      rupees, by thirty per cent;
      (b) where the gross annual rent exceeds six hundred rupees
 F    but docs not exceed eighteen thousand rupees, but such
      percentage of the gross annual rent as is worked out by
      dividing the gross annual rent by six hundred and
      subtracting the quotient from thirty-one, the difference
      being rounded off to the nearest place of decimal:
 G      Provided also that no such reduction in gross annual rent
      shall be madc--
      (a) in case the total covered area in any land or building
      under occupation for residential purpose by the owner
      exceeds one hundred and fifty square metres, or
 H
HARBANSLAL MALHOTRA & SONS PVT. LTD. v. KOLKATA                      533
  MUNICIPAL CORPN. [ABHAY MANOHAR SAPRE, J.]

   {b) where a person owns or occupies for residential purpose       A
   more than one plot of land or building or portions thereof
   within the municipal limit of Calcutta.
   (2) The annual value of any land which is not built upon
   shall be fixed at seven per cent of the estimated market
   value of the land.                                                B
   (3) If the gross annual rent of any class or classes of land or
   buildings used exclusively for hospital or educational
   purposes or for the purposes of sports or as a place of
   worship or as a place for disposal of the dead cannot be
   easily estimated, the gross annual rent of such building shall    c
   be deemed to be five per cent of the value of the building
   obtained by adding the estimated cost of erecting the
   building at the time of assessment less a reasonable amount
   to be deducted on account of depreciation, if any, to the
   estimated present market value of the land valued with the
   building as part of the same premises.                            D

    (4) In the case of any land or building or part thereof used
    for public cinema shows or theatrical performances or as a
    place of similar public recreation, amusement or
    entertainment, the gross annual rent of such land or building
    or part thereof, as the case may be, shall be deemed to be       E
    seven and a half per cent of the gross annual receipts in
    respect of such cinema shows or theatrical performances
    or place of public recreation, amusement or entertainment,
    including receipts from rent and advertisements and sale
    of admission tickets but excluding taxes on the same of          F
    such tickets:
      Provided that the provisions of this sub-section shall not
    apply in the case of temporary fairs, circuses, and casual
    shows or performances.
    {4A) If the gross annual rent of any land or building or part    G
    thereof cannot be easily estimated, the gross annual rent
    of such land or building for the purposes of sub-section {I)
    shall be deemed to be seven and half per cent of the value
    of the building obtained by adding the estimated present
    cost of erecting the building at the time of assessment less
                                                                     H
534     SUPREME COURT REPORTS                      [2017] ll S.C.R.


A     a reasonable amount to be deducted on account of
      depreciation, if any, to the estimated present market value
      of the hind:
        Provided that the estimated present cost shall not include
      the cost of any plant or machinery, excepting those
 B    enumerated in Schedule VIII, on the land or the building
      as aforesaid.
      {S) The annual value as determined under this Chapter shall
      be rounded off to the nearest ten rupees."
                              Section 178
 c
      178. Municipal Assessment Code-{l) The State
      Government may by rules provide for the detailed
      procedure for determination of the annual value of lands or
      buildings in Culcutta and for other matters connected
      therewith and such rules together with any regulations made
 D    under this Act shall constitute the Municipal Assessment
      Code.
      (2) Under the rules as aforesaid-
      (i) every building together with the site and the land
      appurtenant thereto shall be assessed as a single unit:
 E
        Provided that where portions of any building together with
      the site and the land appurtenant thereto arc vertically
      divisible and arc separately owned so as to be entirely
      independent and capable of separate enjoyment
      notwithstanding the fact the access to such separate portions
 F
      is made through a common passage or a common staircase,
      such separately owned portions may be assessed
      separately:
       Provided further that the right of such access is protected
      by a registered deed of agreement:
 G
      {ii) all lands and buildings to the extent these arc contiguous
      or arc within the same cartilage or arc on the same
      foundation and arc owned by the same owner or co-owners
      as an undivided property, shall be treated as one unit for
      the purpose of assessment under this Act:
 H
HARBANSLAL MALHOTRA & SONS PVT. LTD. v. KOLKATA                      535
  MUNICIPAL CORPN. [ABBAY MANOHAR SAPRE. J.]

   Provided that if such land or building is sub-divided into A
   separate shares which arc not entirely independent and
   capable of separate enjoyment, the Municipal
   Commissioner on application from the owners or co-owners
   may apportion the valuation and assessment among the co-
   owners according to the value of their respective shares
                                                              B
   treating the entire land or building as a single unit:
    (iii) each residential unit with its percentage of the
    undivided interest in the common areas and facilities
    constructed or purchased and owned by or under the control
    of any housing co-operative society registered under the
    West Bengal Co-operative Societies Act, 1973 (West Ben.          c
    Act XXXVIII of 1973), shall be assessed separately:
    (iv) each apartment and its percentage of the undivided
    interest in the common areas and the facilities in a building
    within the meaning of the West Bengal Apartment
    Ownership Act, 1972 (West Ben. Act XVI of 1972), a               D
    declaration in respect of which has been duly executed and
    registered under the provisions of that Act, shall be
    assessed separately:
    (v) every land comprised in a thika tenancy with hut or
    building made thereon, either in a bustee or othenvise, shall    E
    be assessed separately as a single unit:
    (vi) every land, which is not build upon, comprised in a lhika
    tenancy, either in a bustcc or otherwise shall be assessed
    separately as a single unit.
                                                                     F
    (3) Notwithstanding the assessment made before the
    commencement of this Act, the Municipal Commissioner
    on his own may amalgamate or separate or continue to
    assess as such, as the case may be, lands or buildings or
    portions thereof so as to ensure conformity with the
    provisions of this section.                                      G
    (4) If the ownership of any land or building or a portion
    thereof is sub-divided into separate shares or if more than
    one land or building or portions thereof by amalgamation
    come under one ownership, the Municipal Commissioner
                                                                     H
536             SUPREME COURT REPORTS                           [2017 J 1l S.C.R.


A           may on an application from the owners or co-owners,
            separate or amalgamate, as the case may be, such lands or
            buildings or portions thereof so as to ensure conformity
            with the provisions of this section.
            (5) A newly constructed building shall become assessable
B           from the quarter following the date of issue of the occupancy
            certificate under the provisions of this Act:
              Provided that is such building is occupied before the issue
            of the occupancy certificate in contravention of the
            provisions of this Act, such building shall be liable for
c           assessment from the quarter following the date of its
            occupation and notwithstanding any other action that may
            be taken under this Act, such building shall not get the
            benefit of the rebate in the consolidate rate under sub-
            section(S) of section 171.

D           (6) The Municipal Commissioner shall, upon an application
            made in this behalf by an owner, lessee or sub-lessee or
            occupier of any land or building and upon payment of such
            fees as may he determined by the Corporation by
            regulations, furnish information to such person regarding
            the appointment of the consolidated rate of such land or
E           building among the several occupiers within such land or
            building for the current period or the period immediately
            preceding:
               Provided that nothing in this sub-section shall prevent
             the Corporation from recovering the dues form any such
 F           person."
              13. Reading of Section 174 shows that it deals with two types of
      assessment for determining the annual value ofland or building. One is.
      in relation to the "land on which the building is built'" and the other is in
      relation to the .. open land'', i.e., the "land on which no building is built".
G     So far as former is concerned, i.e .. land on which building is built, it is
      governed by sub-section (I) of Section 174 whereas so far as the latter
      is concerned, i.e., open land on which no building is built, it is governed
      by sub-section (2) of Section 174,
             14. Jn the case of former, the assessing authority is required to
H
HARBANSLAL MALHOTRA & SONS PVT. LTD. v. KOLKATA                                 537
  MUNICIPAL CORPN. (ABHAY MANOHAR SAPRE, J.)

take land and building as "'single unit" for determination ofits gross annual   A
rent \Vhich is reasonably expected to fetch at the time of assessment
from year to year. To ill ustratc. if the building has some appurtenant land
which is exclusively used by the owner for garden or/and parking the
vehicle~. such building or/and land may fetch more rentals as compared
to a building. which does not have these facilities or has very small land
                                                                                B
appurtenant to the building. In any case. such building and the land cannot
be separated for determining their gross annual rent. Such case,
therefore. would fall in sub-section (I) of Section l 74. The annual value
and gross annual rent of such premises have to be, therefore, determined
as per the procedure prescribed in sub-section (I) of Section 174 of the
Act.                                                                            c
       15. The proviso to sub-section(!) of Section 174, deals with the
cases of"tmnsfcr" of the building and land. In such case, the Assessing
Officer is required to take the amount (sale consideration) mentioned in
the transfer deed as the basis for determining its annual value and then
to determine the gross annual rent of such premises as per the procedure        D
prescribed in sub-section( l ) of Section I 74 of the Act.
       16. However, in a case where no amount is mentioned in the
transfer deed. the proviso says that the Assessing Officer is required to
take the estimated market value of such premises as the basis and then
to determine its gross annual rental as per the procedure prescribed in         E
sub-section( 1) of Section 174 of the Act.
       17. In a situation, where the gross annual rent of any land or
building or any part thereof cannot be easily estimated for the purpose
of sub-section( I) of Section 174, then a procedure is prescribed in sub-
section(4A) of Section 174 as to how gross ruumal rent of such land or          F
building is to be determined.
       I 8. In all the situations set out above, the land or the building or
any part thereof would be taken as "single unit" and not separate for
determining the gross annual rental value. It is also clear from Section
l 78(2)(i) and (ii), which provides that every building together with the
                                                                                G
site and the land appurtenant thereto shall be assessed as a "single unit".
       19. However, the three provisos appended to clause(i) of Section
178 (2) also relates to building and the land but with different class of
cases due to building's peculiar structure. its ownership and the manner
in which such building or land is used by the owner.
                                                                                H
538             SUPREME COURT REPORTS                          [2017] 11 S.CR.


A            20. If the factors set out in any of the three provisos were found
      present in any buikling or land, the assessment of such building and land
      has to be done as per the procedure prescribed in the provisos read with
      Section 174( I ) of the Act.
            21. Now coming to the later category of the cases. i.e., "open
B     land" or "land on which no building is built". it falls in sub-section(2) of
      Section 174. It says that the annual market value of"open land" would
      be fixed at seven percent of the estimated market value of the open
      land.
             22. We arc, therefore, of the considered opinion that Section 174(1)
C     and (2) operate in separate field. Both cannot be clubbed for
      determination of the gross annual rental value of land or building. In
      other word~. both the Sections have to be applied independently depending
      upon the fact as to whether the premises is "building with land" or it is
      an "open land" and accordingly their gross annual rental value would be
      ddermined.
D
            23. When the Legislattu-e itself has carved out two categories of
      cases namely, (l) "land or building" (2) "open land with no building
      thereon" and has accordingly provided different rates and different
      methods of assessment, it docs not appear logical to club both the
      categories of cases.
E
             24. It is a settled rule of interpretation in relation to taxing laws
      that a machinery provision which enables the assessee to avail of a
      concession or benefit conferred by substantive provision in the Act, such
      provisions are required to be construed libernlly. (See GP Singh-Principles
      oflntcrpretation of Statutory Interpretation 13'" Edition page 856). This
F     rule applies to the case on hand and hence, benefit of the interpretation
      must go to the assessec rather than to the taxing man. It also serves the
      purpose for which Section l 74 is enacted.
            25. Coming now to the facts of the case, we find that the High
      Court while remanding the case directed the Tribunal to treat land and
G     building of the premises as separate unit and then to determine the gross
      annual value of the premises by applying Section 174 ( 1) and (2) of the
      Act.
            26. The view taken by the High Court does not command its
      acceptance to us in the light of what we have held above. We, however,
H
HARBANSLAL MALHOTRA & SONS PVT. LTD. v. KOLKATA                                 539
  MUNICIPAL CORPN. [ABBAY MANOHAR SAPRE, J.]

find that the Tribunal followed proper procedure by applying Section            A
174(1) for determining the gross annual value. The Tribunal's order,
therefore, deserves to be restored.
       27. In the result, the appeal succeed~ and is allowed. The impugned
orders dated 28.06.2004 in C.O. No.368 of2004 and dated 17.08.2005
in Review Application No. 2963 of2004 in C.O. No.368 of2004 are set             B
aside and the order of the Tribunal dated 18.11.2002 is restored.


Ankit Gyan                                                  App!.!al allowed.