Airports Authority of India liable for paying land tax: Madras HC
Real Estate

Airports Authority of India liable for paying land tax: Madras HC

Madras High Court has declared that the Airports Authority of India (AAI) is responsible for paying Land Tax as it is not under the Central Government.

V Ramesh, the counsel for the petitioner, informed that AAI said that it is a statutory organisation under the control of the Ministry of Civil Aviation of the Indian Government.

The Civil Airports and Civil Enclaves at Defence Airports are operated by the petitioner over the country. The petitioner also holds particular lands in the Villages of St.Thomas Mount, Cowl Bazaar, Pazhavanthangal, and Porur, and these lands got assessed by the second respondent.

As compared to the tax of Urban Land Tax by the respondent, the petitioner registered below section 30(1) of the Tamil Nadu Urban Land Tax Act 1966. The revision petition got rejected.

The petitioner contended that Section 29 of the Act regards Exemptions.

The Indian Government and Ministry of Civil Aviation owns the petitioner wholly. Therefore, this exemption clause would be relevant to the petitioner, and in consequence, the impugned orders, levying tax are in breach of the exemption clause given below Section 29 of the Act.

Ramesh said that the AAI is a creation by a Parliament Act and the Act provides for the transfer and vesting of the undertakings of the International Airports Authority of India and National Airports Authority of India. It was also targeting better administration and cohesive management of Airports and Civil enclaves across the country, where the transport services were to be operated and included all aeronautical communication stations to help in the establishment of Airports.

In conclusion, the petitioner is a 'State' in the meaning of article 12 of the Constitution of India as its operations are directly controlled by the Ministry of Civil Aviation.

S M Subramaniam, the single-judge bench of Justice, instructed that AAI cannot be constructed as the Central Government in the sense of exemption clause as planned under section 29 (a) of the Tamil Nadu Urban Land Tax Act of 1966.

As a result, the State Government is authorised to impose the Urban Land Tax

Image Source

Madras High Court has declared that the Airports Authority of India (AAI) is responsible for paying Land Tax as it is not under the Central Government. V Ramesh, the counsel for the petitioner, informed that AAI said that it is a statutory organisation under the control of the Ministry of Civil Aviation of the Indian Government. The Civil Airports and Civil Enclaves at Defence Airports are operated by the petitioner over the country. The petitioner also holds particular lands in the Villages of St.Thomas Mount, Cowl Bazaar, Pazhavanthangal, and Porur, and these lands got assessed by the second respondent. As compared to the tax of Urban Land Tax by the respondent, the petitioner registered below section 30(1) of the Tamil Nadu Urban Land Tax Act 1966. The revision petition got rejected. The petitioner contended that Section 29 of the Act regards Exemptions. The Indian Government and Ministry of Civil Aviation owns the petitioner wholly. Therefore, this exemption clause would be relevant to the petitioner, and in consequence, the impugned orders, levying tax are in breach of the exemption clause given below Section 29 of the Act. Ramesh said that the AAI is a creation by a Parliament Act and the Act provides for the transfer and vesting of the undertakings of the International Airports Authority of India and National Airports Authority of India. It was also targeting better administration and cohesive management of Airports and Civil enclaves across the country, where the transport services were to be operated and included all aeronautical communication stations to help in the establishment of Airports. In conclusion, the petitioner is a 'State' in the meaning of article 12 of the Constitution of India as its operations are directly controlled by the Ministry of Civil Aviation. S M Subramaniam, the single-judge bench of Justice, instructed that AAI cannot be constructed as the Central Government in the sense of exemption clause as planned under section 29 (a) of the Tamil Nadu Urban Land Tax Act of 1966. As a result, the State Government is authorised to impose the Urban Land Tax Image Source

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