Kerala Building Tax Act | Increased Plinth Area Due To Additional Construction Justifies Building Tax Reassessment: High Court
The Kerala High Court held that once the plinth area of a building increases due to additional construction, a fresh building tax assessment must be carried out under the Kerala Building Tax Act. Justice Ziyad Rahman A.A., after examining the documents produced by the assessee, stated that the assessee had carried out additional constructions after the initial construction, which...
The Kerala High Court held that once the plinth area of a building increases due to additional construction, a fresh building tax assessment must be carried out under the Kerala Building Tax Act.
Justice Ziyad Rahman A.A., after examining the documents produced by the assessee, stated that the assessee had carried out additional constructions after the initial construction, which was subjected to assessment under the Kerala Building Tax Act.
In this case, the assessee/petitioners are the joint owners of a building constructed in the property comprised in Thodupuzha Village in Thodupuzha Taluk of Idukki District.
Initially, the assessee obtained a building permit for constructing a building, with a plinth area of 3641.32 sq. ft. Mtrs. However, as the first phase of the project, they completed the building with a plinth area of 2332.42 Sq. Mtrs.
Upon completion, the said building was assessed for tax under the provisions of the Kerala Building Tax Act, 1975, by the Thasildar, and an amount of Rs. 3,92,400/- was paid by the assessee.
Subsequently, the assessee carried out further construction in the said building, and as of now, the total plinth area is 3580.19 sq. ft. Mtrs. The grievance of the assessee is that, now, a further assessment has been made directing the assessee to pay a further amount of tax in respect of the said building.
The bench referred to the Sec.5(4) of the Kerala Building Tax Act, 1975 which specifically contemplates that, when the plinth area of a building is subsequently increased by new extensions, major repairs, or improvements after its initial completion, building tax shall be computed on the total plinth area of the building including that of the new extension or repair or improvement and credit shall be given to the tax already levied and collected.
The bench opined that the amount already remitted by the assessee at the time of the first assessment is already given due credit. Since the additional construction is an admitted position, nothing would preclude the Thasildar/3rd respondent from making a fresh assessment in the matter, taking the total plinth area of the building, in the light of the statutory stipulations contained in Sec.5(4) of the Kerala Building Tax Act, 1975.
In view of the above, the bench dismissed the petition.
Case Title: P.T. Vincent v. State of Kerala
Case Number: WP(C) NO. 43431 OF 2025
Citation: 2025 LiveLaw (Ker) 802
Counsel for Petitioner/Assessee: George Mathew
Counsel for Respondent/Department: Reshmitha R Chandran