IN THE COURT OF DIRECTOR MILITARY LANDS & CANTONMENTS

KARACHI REGION, KARACHI

( APPELLATE OFFICER )

APPEAL NO. 10/2019

Shahid Sami
Son of Mirza Saleem Ahmed (late)
Muslim, Adult Resident of
House No B-128, Navy Housing Scheme,
Karsaz, Karachi ……………………………...…………..Appellant

VERSUS
Faisal Cantonment
Through Cantonment Executive Officer
Shahrah-e-Faisal,
Karachi ………………………. …..….…........…………..Respondent

Mr. _________________________Advocates for Appellant

Mrs. Remat-un-Nissa, Advocate for the Respondent

Dated: 05-09-2019
ORDERS
1 By this order, I would like to dispose of this appeal. It is recognized
principle of law that all public functionaries are under lawful
obligation to follow dictum laid down by the Honorable Supreme
Court as reported in case [2013 SCMR 1419], which reads as under:-

“….Courts while proceeding with any lis, had to clear their

mind from any predetermined notions and had to examine the
case of the parties before it in a fair and equitable manner,
giving due consideration to the case of all the litigating parties
by placing it in juxtaposition and evaluating their respective
claim in line with applicable law.”

2 From the note of law officer, Mr. Imran Mangrio, it appears that the
appeal was presented on 04-07-2019 but diary for presentation has been
made on 05-07-2019. From the perusal of back page of the first page of
appeal, it appears that the law officer noted two objections as time
barred for two years and the appellant has to satisfy on limitation and
disputed amount has not been paid. I am astonished to see that at the
 time of sending notice of this appeal and admission / getting sign from
me none of the point was brought in my knowledge as no order on these
points were taken from me while otherwise there was no question to
issue notice of this appeal, unless the appellant satisfies me on the point
of limitation and not depositing disputed amount. The both points are
very fundamental and legal points, if these points are not killed /
resolved / decided, the question does not arise to issue notice to the
respondent for hearing of this appeal. It was necessary for the law
officer to place both objections before me instead of noting on the back
of first page of appeal and get order thereon but unfortunately it has not
done, so notice of appeal was issued to the respondent and without
deciding the point of limitation, which could not be was heard and
determined, which is against the norms of principle of justice. Mere
raising objections is noting on back of the page and is not sufficient
unless such objections are placed before me and orders on those
objections in a clear manner is obtained, however for the time being, it
is excused as the last chance, however it is strictly directed to the officer,
whosoever it may be is dealing with appeals in future to properly go
through contents of the appeal, note objections properly and obtain
order on those objections from the Appellant Authority. On certain
hearings, one advocate has been appearing in this case and his name
was told to me is Mr. Tariq Advocate but surprisingly from the perusal
of file, it does not appear that he ever filed vakalatnama for the
appellant and nor the appeal was signed by him this fact was not ever
brought in my knowledge by the law officer that counsel, who is
appearing in the appeal has no authority to appear. In the note even, law
officer failed to write down name of the counsel, who filed the appeal.

3 The leading facts of the case of the appellant is that he is legitimate and
lawful owner of G+1 constructed House No 128, Navy Housing Scheme,
Karsaz, Karachi. The property was already assessed by the Respondent.
The certificate date 04-04-2012 and No Dues Certificate was also issued
on 08-02-2012. The amount of assessment concluded in the year 2012
was Rs. 150,000/- The appellant received a letter on 07-04-2017 from
the respondent, which was replied by him stating therein that house of
the appellant has already been assessed on 30-10-2017. The appellant
 also made a request to issue property tax challan as per Assessment
Certificate dated 04-04-2012. The tax amount assessed now is much
high and is without justification. The appellant was again called on 07-
04-2017 by the Assessment Committee, wherein the appellant assured to
the Assessment Committee to resolve the grievances of the appellant and
fixed challan at the rate of Rs. 104,000/-. The Respondent and its
subordinates staff made lame excuses and grievances of the appellant
were not resolved. The respondent staff advise the appellant to file
reminder application dated 30-10-2017 & 20-03-2019 but still no reply
has been received to the appellant from the respondent. Because of
above facts assessment of House No B-128, Navy Housing Scheme,
Karachi has not been concluded. The appellant made a request to direct
the respondent to issue property tax, challan as per Assessment
Certificate dated 04-04-2012, enabling him to clear the entire
outstanding of the Respondent but challan in the sum of Rs. 497,500/-
has been issued

4 On notice to the Respondent, Mrs. Rehmat-un-Nissa Siddiqui Advocate

of Aashir Law Associates appeared for the Respondent / Faisal
Cantonment. She moved an application under section 87 (b) of the
Cantonments Act, 1924. Mr. Tariq Advocate, who was appearing for the
appellant placed on record Receipt No 3168 dated 07-08-2019, which
shows that the appellant has deposited a sum of Rs. 169,575/- as a part
payment in Case No 155/2018, filed by the Respondent before the
learned Judicial Magistrate under section 259 of the Cantt Act, 1924.

5 Apparently this appeal was hopelessly time barred and without

condoning inordinate delay in filing of appeal could not be heard but
this point at the time of hearing of appeal and otherwise was never
brought in my knowledge so therefore without deciding this legal point,
appeal was heard, which could not be actually heard at all. It was
contended by the learned counsel appearing for the appellant that the
Respondent is not treating the appellant equally at par as in the same
vicinity and for the same buildings, tax imposed by the Respondent is
very less and thus the Respondent has discriminated the appellant while
deciding case for fresh assessment. The learned counsel appearing for
 the appellant and in order to prove his contention as to discrimination
made by the Respondent with the appellant has placed on record, the
bills of adjoining properties. The tax of House No B-94 situated in the
same locality is Rs. 165,000/-, tax of House No D-129 is Rs. 181,500/-,
tax of House No B-127 is Rs. 208,725/- and tax of House No D-125 is
Rs. 208,725/- while tax of present property as claimed by the Respondent
is Rs. 495,500/-. Since this property is situated in the same locality but
tax of same properties in the said locality does not match with the
property of the appellant. The appellant has proved that he has been
discriminated while levying the tax on his property by the Respondent,
thus the Respondent violated Articles 4, 25 & 77 of the Constitution. It
appears that neither the appellant has been dealt with in accordance
with law nor he was equally treated and furthermore, the tax is being
levied against his property without establishing lawful authority to the
extent of quantum. All this conduct of the Respondent is in violation of
the fundamental rights of the appellant guaranteed in the constitution.
The Articles 04 & 25 most relevant, therefore are reproduced for
convenience.

The Article 04 of Constitution reads as under:-

04.Right of individuals to be dealt with in accordance with law, etc. (1) To

enjoy the protection of law and to be treated in accordance with law is the
inalienable right of every citizen, wherever he may be, and of every other
person for the time being within Pakistan.

(2) In particular—
(a) no action detrimental to the life, liberty, body, reputation or property of
any person shall be taken except in accordance with law;
(b) no person shall be prevented from or be hindered in doing that which
is not prohibited by law; and
(c) no person shall be compelled to do that which the law does not
request him to do.

The Article 25 of the Constitution bounds of equality of citizens. The Article

reads as under:-

Equality of citizen –(1) All citizens are equal before law and are entitled to
equal protection of law.

(2) There shall be no discrimination on the basis of sex.

(3) Nothing in this Article shall prevent the State from making any special
provision for the protection of women and children.
6. In order to examine points taken by learned counsel of the appellant, the
original assessment file was summoned from the Respondent. From the
perusal of original file, it appears that the Respondent has committed
gross violation of basic and fundamental law as neither principles laid
down earlier by this Appellant Authority has been ignored but also
mandatory provisions contained in Chapter V of the Cantonments Act
have also been fully violated (see sections 66 to 73). It is established law
that powers to propose tax lies with the Board and whenever a proposal
of tax is approved by Board, the notice under section 68 of the Cantt Act
then may be served by the Executive Officer and the Cantt Executive
Officer cannot propose tax and serve notice under section 68 of the
Cantonments Act, unless such proposal has already been approved by
Board but in no way, any power lies with any official of the Board to
serve notice under section 68 of the Cantt Act even such proposal was
approved by the Board. From the perusal of original file, it appears that
proposal of tax was made on 20-03-2017 by one Mr. Ashraf Ali UDC as
he posed himself to be the tax collector as well. This proposal was
approved by then OS Mr. Qaim on the same date. The sheet has been
initialed by the then Cantonment Executive Officer. It is proved that such
proposal was never placed before Board for approval. Then thereafter
the said Mr. Ashraf Ali signed proposed notice bearing No
30/H/Assessment/17/6053 dated 04-04-2017 while in law the said
official Mr. Ashraf Ali was in no way competent to sign this notice. It is
further revealed that original notice was also initialed by this official
and moreover notice No 30/H/Assessment/17/8312 dated Aug-2017 was
prepared which has been signed by the then OS Mr. Qaim and both
copies of the notice dated nil are available on record. All this shows that
the Respondent failed to call the appellant to attend meeting of
Assessment Committee. This is the height violation of law on the part of
those two officials Mr. Ashraf Ali UDC & OS Mr. Qaim. Such process,
which has taken in gross violation of law should never be allowed to
sustain.

7. I have been fortified that already this Appellant Authority has given
landmark order on 04-03-2014 in Appeal Nos. 34, 35 & 36 /2013. This
order was circulated to all Cantonment Executive Officers in the Region
 with directions to follow principles laid down therein in future but now it
appears that the instructions already issued by the Appellant Authority
are not being complied with and the assessment process is being going
on the whims of the lower staff. The order dated 04-03-2014 is rich and
bulky order, containing 19 pages. Apart from this order, the Appellant
Authority also passed another order on 09-04-2014 in Appeal No
08/2014, wherein it was directed to follow the principles already laid
down in order passed on 04-03-2014 in Appeal Nos. 34, 35 & 36 / 2013.
I have also been fortified by the judgment of the learned Division
Bench of the Honorable Sindh High Court, reported in 2010 CLC 492
(R.N.A International V/s. Federation & others) as this is also case
of the Faisal Cantonment, where the demand of property tax issuing
challan to the petitioner by Cantt Board was set aside on the ground of
discrimination in connection with the assessment held by competent
forum with directions to the Respondent to re-assess the petitioner’s
building after due notice to him on the basis of payment made by and
claimed from other occupants on similar building and / or the same
buildings there is another judgment of the learned Division Bench of the
Honorable Sindh High Court reported in 2006 YLR 577 (Abdul Razzaq
versus Executive Officer Cantonment Board Clifton) where it was held
that (recovery could be made after complying with provisions of
Chapter V of the Cantonments Act). Now it has been proved in this case
respondent failed to complied with the provision of Cantonment Act,
1924.

8 Since it is proved that the assessment was concluded in sheer violation of

law and the rules, in the circumstances, the same is set aside. The
Respondent is directed to proceed with case for assessment of property
of the appellant a fresh strictly in accordance with law and instructions
earlier issued by this Appellant Authority and preferably to decide the
entire process within a period of 3 months from the receipt of this order.
As the Respondent while assessing the property in question has
discriminated and also not followed the Chapter V of the Cantonments
Act in letter and spirit as well as the principles laid down by this
Appellant Authority in earlier judgments.
9. There is misconception among the Cantonment Boards all over the
country that in case if property is in occupation of the owner / lessee,
the tax comparatively may be less to the property which has been let
on rent. I am unable to find any provision in the Cantonments Act,
1924 or any bye-law and rules framed by the Govt. regarding
assessment of property, where such concept assessment of property in
case of rent and self occupation has been mentioned. This is a
practice all over the country in all the Cantonments that in case if
property is in self occupation, tax is different to the property, which
has been rented out. This concept has not been recognized and
accepted by any law, policy and rules in vogue. Therefore to the
extent that the property be re-assessed on self-occupation basis
instead of rent is absolutely unwarranted in law and in no way in case
if property is not rented out ARV of that property should not be less
than the table prepared by the said Cantt Board for fair letting value.
In terms of Notification S.R.O. 1293(1)/2008 dated 22-12-2008, the
power to hear Appeal being officer of Govt. has been assigned to the
Director Military Lands & Cantonments, while such power according
to the original application of the Act were used to be exercised by the
District Magistrate. Now power of the District Magistrate in terms of
aforesaid Notification are being exercised by the Director Military
Lands & Cantonments of the Region as Appellant Authority. The
proceedings which are undertaken by the Appellant Authority are
quasi judicial proceedings. The order passed by the Appellant
Authority unless is reviewed under section 88 of the Cantonments Act
by the said authority is subject to Revision under section 277 of the
Cantonments Act, which is now to be determined by the Director
General Military Lands & Cantonments Deptt. in terms of Govt.
instructions No 65(1)/G/D5/C/67 dated 18-01-1967 but the order
passed in Review cannot be challenged in Revision Application but
the order passed in Review is subject to Const. Petition in the High
Court of Province.
10. It has observed by me that Cantt Executive Officers exceeding their
executive power does not care to exercise powers of the Board and this
is common practice that Board does not delegate its power to the
officer and the further process of Notification is not made but even
then the Executive Officer and the lower staff of the Cantonments
exercise powers of the Board, which is absolutely disliked being
against the sprit of law and is prevented in future. In Cantonment law
the powers have been divided into two, the Board and the Cantonment
Executive Officer. The powers under sections 73, 74, 82 first proviso,
84 (4), 91 (2), 92, 94, 95, 103, 108, 133, 141, 152, 153, 155, 157, 158,
170, 215, 241, 244 & 259 (2) have been conferred upon the
Cantonment Executive Officer and in such a case, in fact, the
Cantonment Executive Officer can exercise powers conferred upon
him within the parameter of law, while powers under sections 60, 61,
62, 63, 64, 65, 66, 67, 68, 69, 71, 72, 75, 76, 77, 77A, 81, 82(3), 82 (5),
83, 84, 86, 89, 91, 93, 97, 98, 99, 100, 101, 102, 107 (3), 109, 110,
112, 113 (b), 113 (3), 114, 115, 116, 117, 117A, 119, 122, 123, 124,
126, 127, 129, 130, 131, 132, 134, 135, 136, 137, 138, 139, 140, 142,
143, 144, 145, 146, 147, 149, 150, 156, 161, 162, 164, 166, 168, 169,
171, 172(2), 173, 174, 177, 178, 179, 181, 182, 183, 183A, 185, 186,
187, 188, 189, 190, 191, 192, 193, 194, 195, 196, 197, 198, 199, 200,
201, 202, 203, 204(2), 206, 208, 209, 210, 212, 216, 217, 218, 219,
221, 222, 223, 224, 225, 226, 227, 228, 229, 230, 231, 232, 234, 234
(A), 234 (b), 253, 255, 256, 257, 260, 261, 262, 264, 266, 267, 269,
270, 273, 282, 283, 286A & 289 have been conferred upon the Board
and in such a case, the Cantonment Executive Officer can exercise
these powers, if delegated by Board and notified by the Federal Govt.
in official gazette in terms of section 286B (2) of the Cantonments Act
and not otherwise at all. The law provides that if the Board delegates
one or more powers by a resolution, the process is that the said
resolution is to be sent to the Federal Govt. for notification in the
official gazette and unless this process is not completed and
notification is not published in the official gazette mere on the strength
of Board resolution neither any officer nor any official is permitted in
 law to act upon and use such powers. For convenience of this
Honorable Court, section 286B (2) of the Cantonments Act is
reproduced below:-

The Board may, with the prior approval of the Federal

Government, by resolution, delegate all or ay of its powers
under this Act or the rules made thereunder to any of its
officers subject to such conditions or limitations as may be
specified, in the resolution to power conferred upon Board.

11. It is crystal clear that imposition of tax is statutory authority of the

Board but such authority is to be exercised with due care and strictly
after adopting the process / procedure provided in law and not
otherwise. This is settled principle of law that every authority either
functioning in administration side or discharging judicial function has
to observe the following maxim and their plethora of judgments of
superior courts and if the process have not been taken / completed in
the manner provided in law and the same was completed in
derogation of law and procedure provided, the entire process and
conclusion under taken thereon is null and void, having no legal effect
and not biding for the parties and the same is a situation in present
matter.
A communi observantia est recedendum

When a thing is to be done in a particular manner, it must be

done in that manner and not otherwise and vitiates the entire
proceedings. The reliance is placed on following judgments.

PLD 1993 Lahore 141

1994 MLD pg. 1637
PLD 2005 Karachi 128
2006 PSC 281
2007 SCMR 307
MLD 2010 Lahore 1474
SBLR 2010 Sindh 843
MLD 2011 1494
2013 CLC PG 185
PCRLJ 2013 Page 18
SBLR 2013 BAL 3613
 MLD-2013 1675
MLD-2013 1675
2014 MLD Pg 379
PLD 2014 Islamabad Pg 1
12 From close examination of sections 66, 67, 68, 71, & 72 of the
Cantonments Act, 1924, it is clear that such is function of the Board
and departure from compliance of Chapter V is not permissible. It is
felt by me that there is some confusion in mind of the officers
regarding method of assessment of Annual Value and the period after
which the Revision can be effected. In order to dispense with all doubt
and ambiguity, the position is clarified as under and such guidance
was already given by this Appellant Authority as stated above in order
dated 04-03-2014, passed in Appeal Nos. 34, 35 & 36 /2013. The
order was circulated to all Cantonment Executive Officers in Karachi
Region for compliance and guidance in future but non is following the
instructions / guidance provided by my predecessor in the said order.

12. The attention is invited to Section 64 of the Cantonments Act, 1924,

wherein the definition of “annual value” is given as under:-

(Sec-64) “For the purposes of this Chapter, (Chapter-V) “annual value”

means-

a) In the case of railway station, hotels, colleges, schools, hospitals,

factories and any other buildings which a Board decides to assess
under this clause, one-twentieth of the sum obtained by adding the
estimated present cost of erecting the building to the estimated value
of the land appertaining thereof, and

b) In the case of a building or land not assessed under clause (a), the
gross annual rent for which such building (exclusive of furniture or
machinery therein) or such land is actually let or, where the building
or land is not let or in the opinion of the Board is let for a sum less
than its fair letting value, might reasonably be expected to let from
year to year.

Provided that, where the annual value of any building is by reason of

exceptional circumstances, in the opinion of the Board, excessive if
calculated in the aforesaid manner, the Board may fix the annual value
at any less amount which appears to it to be just.”
2. A close examination of this legal position would reveal that for the
purposes of assessment of annual value the properties situated in a
Cantonment are divided into two broad categories:-

1) The property which is not capable of being let out at a rent calculated
on the basis of bare premises, such as railway stations, hotels,
colleges, schools, hospitals, factories and any other building etc.

2) The properties which are of the nature that there bare premises have
rental value, fall in the second category. In other words, the properties,
which are capable of fetching rent for the bare premises, are to be
assessed as properties falling in the second category. If both clauses
are placed side by side it become apparent that a house which is
constructionally and by used not a residential house but more akin to a
“hotel” or “lodging house” such house should be assessed under
clause (a) rather than under clause (b) of section 64 of the
Cantonments Act, 1924. Analyzing clauses (a) & (b) of section 64 of
the Cantonments Act, 1924, it will be seen that the properties in clause
(a) with the exception of ‘hotel’ are generally not rented out and may,
therefore, bear no rental value. A hotel has a rental value, but appears
to have been grouped with railway stations, schools, etc., because the
annual value under section 64 is to be assessed of bare premises
while a ‘hotel’ is rented out with furniture, fittings, machinery, plant,
crockery, glassware, cutlery and linen etc. the rental value of a hotel
would thus differ widely from the rental value or its bare premises. The
same consideration would be applicable in the case of a factory. There
seems to be no other common feature between the different
categories of building included in Clause (a). The word ‘hotel’ must,
therefore, be give a meaning so as to include properties which bear
this common feature, such as, officers’ mess, a club house or other
institution which provides board and loading to a limited number of
persons with the approval of the owner, there is no warrant for
importing into the interpretation of Clause (a) the distinction between a
business hotel and a private hotel. The clause speaks of ‘hotel’ which
includes both. Clause (b) would thus include properties which usually
have a rental value and can be assessed on the principle of what rent
a hypothetical tenant might reasonably be expected to pay for the
building from year to year. If both clauses are placed side by side it
becomes apparent that a house which is constructionally and by use
not a residential house that is more akin to a “hotel” or a “lodging
house”. The same should be assessed under clause (a) rather than
under clause (b) of section 64 of the Cantonments Act, 1924. The
reliance is placed on leading judgment of Apex Court, reported in 1968
SCMR Pg 752. In 1951, in a case of Karachi Cantonment, a reference
was made to the West Pakistan High Court at Karachi on the basis of
distinction between a “business hotel” and a private hotel as
mentioned in ‘Stroud’ Judicial Dictionary. The learned Single Judge
answered the reference in a negative form, which was impugned in the
Supreme Court of Pakistan. The Supreme Court of Pakistan while
granting leave considered whether section 64 (a) justified confining the
meaning of the word ‘hotel’ so as to exclude a ‘private hotel’ and
 whether in the premises answered the description of ‘private hotel’
contained in the reference to Stroud the benefit of 64 (a) was not
appropriately to be allowed. The question was answered by the Full
Bench Supreme Court of Pakistan in a case Mst. Parin R. Bamboat
versus Collector of Karachi and others reported 1968 SCMR Pg 752
relying upon another judgment reported in 1948 LJR Pg 244 the word
“hotel” – both private and business hotel included – there is no
warrant or importing into the interpretation of clause (a) the distinction
between a business hotel and a private hotel.

ANNUAL VALUE:

The annual value of the properties falling in the first category has to be
worked out as per formula given in sub-section (a) of section 64. No other
method in this respect can be legally adopted. As regards the properties
falling in the second category, the annual value for the purpose of taxation is
worked out on the following basis:-

i) Where the property is actually let, the annual value is the gross annual
rent for which such building (exclusive of machinery and furniture) is
let. It, therefore, follows that the assessment depends upon what the
tenant might pay as rent.

Annual rent is the amount which hypothetical tenant would pay. It

does not include the occupier’s taxes such as lighting, conservancy
and water tax, and the Cantt. Board is entitled to levy tax on gross
annual rent which is also the annual value for the purposed of House
Tax. Thus the Cantt. Board has to assess a building for the purposes
of taxation on the actual gross amount rent if such a building is let. It is
therefore, obvious that the annual value for the purposes of taxation
follows the rent, and the rent normally does not follow the assessment.

ii) If the property is not let, or if it is let in the opinion of the Board for a
sum less than its fair letting value, then the annual value is the gross
annual rent for which such property might reasonably be expected to
let from year to year. In the case of building occupied by the
owner, therefore, the annual value is the highest reserved rent
which the owner of the property would reasonably demand and
would be willing to pay for such a building rather than leave it
and rent a less suitable house meaning thereby is that the
principle to assess a property is the rent on which reasonably it
can be let out and there will be no difference in annual rental
value either the property is in personal / self occupation of the
owner or it has been let out on rent. The annual rental value of the
property in both the circumstances will not be different. The
Appellant Authority in its order dated 4-3-2014, passed in Appeal
Nos. 34, 35 & 36/2013 has already directed that in future Cantt
Board should never follow the formula that the property if is in
 self occupation of the owner, the rate of tax will be less to the
property which has been let out by the owner on rent however all
Cantt Board should prepared a table, determining therein the fair
letting value of the properties within their jurisdiction and any
change as the circumstances so required can be made in the
table, prepared for fair letting value but not at least before the
expiry of one year from the date on which the table for fair letting
value was prepared. It is however possible that if the property is
not on rent, then such property should not be assessed from the
value declared in the table prepared for fair letting value in any
manner, however the Assessment Committee while deciding the
case may reduce the proposed assessment prepared on the basis
of table of fair letting value upto 15% keeping in view the location
and age of the said property.

13. The Annual Rental is the value, which the building possesses at the
time, the assessment is made. The present value is not the value of any
exceptional year but the value, which under present circumstances the
building would be worth to let in a average year. To make the matter
simple, it is submitted that rent is like the price, and as the price of a
commodity is determined by the equilibrium between the supply and
demand, so is the rent of a building fixed by the equilibrium between
the supply and demand for the house. The force behind such supply
and demand are purely socio-economic and not under the control of
any organization.

14. Now it becomes evident that the assessment of annual value for the
purposes of taxation is a continuous process; and it fluctuates with the
rise and fall in the rents at a given time if at any time, the demand for
building increases and a sufficient number of house is not there to
meet such demand the rents would tend to rise and vice-versa; the
assessment of annual value for the purposes of taxation will follow the
trend of rents.

15. The annual value of property hired or requisitioned by the

Government or let out at increased rent can be altered on the basis of
increase in gross rental value under the provisions of section 71 (1)
(d) of the Act by the Board without refereeing the matter to
Assessment Committee. The Assessment Committee will come into the
 picture after issuance of notice by the Board under section 67 & 68
(1) of the Cantonments Act, 1924 for the followings.

(a) To enquire and investigate the objections.

(b) To authenticate the assessment list.

c) After authentication of assessment list under section 69, same shall

not be referred again to Assessment Committee.

d) The assessment authenticated by the committee does not require

confirmation of the Board.

(e) The Assessment Committee is permanent feature of Cantonment

Administration.
16. Any amendment in the assessment list under section 71 is to be made
by the Board and the same shall not be referred to the Assessment
Committee for authentication. The amendment made by the Board
shall be final and subject to appeal under section 84.

17. It is left open for Cantt Boards to re-assess property in the light of
change scenario and in case the property is in self occupation or
rented, there will be no difference for the purpose of taxation and tax
in both the situation will may be the same and in no way in case if
property in self occupation, ARV will not be less than mentioned in
the table of fair letting value. The tax is assessed against the property
considering into its fair letting value means rent, which the property
can fetch, however if the property has been rented out and the rent
amount is higher to the table of fair letting value prepared by the
Cantt Board, the rent determined in the agreement for the said
building shall be the fair letting value. Now the assessment of
property on the basis of self-occupation should be finished for ever
having no background and in no way tax should be less than the ARV
determined in the table of fair letting value.

18 This is well settled principle of interpretation of statute as held in

case of State Bank of Pakistan versus The Director, Military Lands &
Cantonments, Rawalpindi & others reported in PLD 1990 Supreme
Court page 827 that
 “Statute must be read and constructed as a whole
notwithstanding that every section in a statute is a substitutive
enactment in itself. Division of statute in two sections and
chapters, is a mere matter of convenience but sometimes, it is
helpful in discovering the intention of legislature and given
extended meanings to the provisions of a statute but there is no
general rules that such division itself would be a determining
factor for interpretation of a provision”.

19 Now it is crystal clear that imposition of tax is statutory authority of

the respondent but recovery of tax can be affected only after
undertaking the procedure provided in Chapter-V of the Cantonments
Act, 1924 in letter and spirit. Levy and proposal of tax is not authority
of the Executive Officer including any other officials of the Board but
such power lies with the Boards only and the Executive Officer and
other officials of the Board only have to simply comply with the
directions / decisions of the Board. It is undoubtedly proved from the
close examination of sections 66, 67, 68, 71 & 72 of the Cantonments
Act, 1924 that such is a function of the Board and not the Executive
Officer. In section 66, 67, 68 & 72 the word “shall” has been used, it
means that the compliance of these sections in letter and spirit is
mandatory and departure is not permissible, this is the reason that the
Superior Courts in cases where departure was made as Chapter-V
was not complied with in letter and spirit, the assessment made was
set aside with direction to carry on such exercise again a fresh after
complying with the provisions of Chapter-V of the Cantonments Act,
1924.

Section 66. Assessment list.-

When a tax assessed on the annual value of buildings or lands or both

is imposed, the Board shall cause an assessment list of all buildings
or lands in the Cantonment, or of both, as the case may be, to be
prepared in such form as the Federal Govt. may by rule prescribe.

Section 67. Publication of assessment list.-

When the assessment list has been prepared, the Board shall give
public notice thereof, and of the place where the list or a copy thereof
may be inspected, and every person claiming to be the owner, lessee
or occupier of any property included in the list, and any authorized
 agent of such person, shall be at liberty to inspect the list and to
make extracts there from free of charge.

Section 68 Revision of assessment list.-

(1) The Board shall, at the same time, give public notice of a date,
not less than one month thereafter, when it will proceed to consider
the valuations and assessments entered in the assessment list, and, in
all cases in which any property is for the first time assessed or the
assessment is increased, it shall also give written notice thereof to the
owner and to any lessee or occupier of the property.

Section 71. Amendment of assessment list-(1).

The Board may amend the assessment list at any time.

(a) by inserting or omitting the name of any person whose name

ought to have been ought to be inserted or omitted or.

(b) by inserting or omitting any property which ought to have been

or ought to be inserted or omitted, or

(c) by altering the assessment on any property which has been

erroneously valued or assessed through fraud, accident or
mistake, whether on the part of the Board or of the Assessment
Committee or of the assessee, or

(d) by revaluing or re-assessing any property the value of which

has been increased, or
(e) in the case of a tax, payable by an occupier, by changing the
name of the occupier:
Section 72. Preparation of new assessment list.-

The Board shall prepare a new assessment list at least once in every
three years, and for this purpose the provisions of sections 66 to 71
shall apply in like manner as they apply for the purpose of the
preparation of the assessment list for first time.

The followings are the case laws, when assessment was set aside on
the ground that the provisions of Chapter-V were not complied with.

In case of Abdul Razzaq v/s. Clifton Cantonment reported in 2006

YLR 577 it was held as under:-

For the earlier years the Cantonment Board Clifton shall be at

liberty to initiate the proceedings strictly in accordance with law
as contained in Chapter-V of the Cantonments Act, 1924.
Likewise, if the assessment is revised it shall be done strictly in
 accordance with the provisions contained in Chapter-V of the
Cantonment Act, 1924. Without complying with the provisions
of Chapter-V of the Cantonment Act, 1924 the Cantonment
Board, Clifton shall not recovery any house tax from the
petitioner for the period prior to the year, 2002.

Further in case of the Faisal Cantonment Messrs R.N.A. International

versus Faisal Cantonment reported in 2010 CLC Pg 492, it was held
as under:-

“We have considered the arguments advanced at bar, the

petitioners appears to have been discriminated in connection
with the assessment held by the competent forum payable by
the petitioners, therefore, the respondent No. 2 are directed to
reassess the disputed property owner by the petitioners after
due notice to the assesses on the basis of the payments made
by the other occupants of the similar building and/or of the
same building on the basis of the taxes claimed from other
occupants.

20 The following parameters are determined and directed to follow by

the Cantt. Boards for assessment of properties coupled with
incorporated above.

01. The assessment of annual value for the purposes of taxation is a

continuous process: and it fluctuates with the rise and fall in
the rents at a given time.

02. Annual rental is the value which the buildings possess at the
time assessment is made. The rent is like the price, between the
supply and demand, so is the rent of a building fixed by the
equilibrium between the supply and demand for that house.
Annual rent is the amount which hypothetical tenant would pay.
The Board is entitled to levy tax on gross annual rent which is
also annual value for the purpose of house tax. In more simple
way it can be said that annual value is grass rental value for
which such property might reasonably be expected to let from
year to year.

03. In case the building is occupied by the owner or somebody else

without rent, the annual value is the highest reserved rent
which the owner of the property would reasonably demand and
would be willing to pay for such a building rather than leave it
 and rent a less suitable house meaning thereby is that the
annual rental value of the building will be the same if it would
have been rented out, however for convenience and to avoid
discrimination, Cantt Boards are directed to prepare a table of
fair letting value within a period of 03 months for the locations
within their municipal jurisdiction keeping in view the cost of
construction, cost of land, the other factors and evidence if any
available and after preparing such list be published in two
newspapers one Urdu and the other English in Karachi and in
three newspapers for CB Hyderabad and Pano Aqil English,
Urdu as well as Sindh and whatever objections are received,
placed the same before the Board along with the list prepared
for fair letting value by the Cantonment Executive Officer for
considerations of the Board. The Board shall consider the table
of fair letting value prepared by the Executive Officer and the
objections received thereof and finalize keeping in view the
objections so received and the table prepared by the Cantt
Executive Officer then finally the list finally approved by the
Board shall be called the table of fair letting value and such
final approved list shall also be published for information to the
people at large in the manner provided above for calling
objection. In no way annual rental value of the property shall
be proposed less to the table approved by the Board for fair
letting value. All Board resolutions passed earlier on the
subject after the approval of the table of fair letting value shall
become ineffective and the assessment committee upto 15% of
the proposal of tax according to circumstances of the property
keeping in view the age of property and location may reduce. It
is worth to mention that in case if the property is rented out and
the rent amount comparing to the table prepared by the Board
has been shown is to be less, the annual rental value shown in
the table shall be preferred and acted upon.

04. The actual occupier is liable to pay taxes to the Cantt Board
notwithstanding date of possession over the property.
05. The assessment list is got to be prepared by the Board. As there
is no mention of the means of preparation. The Board is
competent to adopt any mean to fulfill this obligation, however
if the Board meeting has not been scheduled shortly or cannot
be scheduled for any reason of whatsoever nature in near
future and in the opinion of Executive Officer, there is urgency
and preparation of assessment list under section 66, publication
of assessment list under section 67 and revision of assessment
list under section 68 is to be made necessary for service and
safety of the public, the same may be carried on after approval
of the President Cantonment Board in terms of section 25 of the
Cantonments Act, 1924.

06. The notices as required under section 67 & 68 (1) are to be

served after approval of the Board are in the manner provided
in above clause No. 04 and after this stage Assessment
Committee comes into the picture. This committee under section
68 (3) is entrusted with the duties and if the Board meeting has
not been scheduled shortly or cannot be scheduled for any
reason of what so ever nature in near future and in the opinion
of Executive Officer, there is urgency and proposal / revision is
necessary for service and safety of the public, the same may be
served after approval of President Cantonment Board in terms
of section 25 of the Cantonments Act, 1924.

07. After the assessment list has been authenticated under section
69, it will be seem that there is again no reference to the
Assessment Committee.

08. The Cantt. Boards are required to assess the property from the
date of completion or occupation, whichever is earlier
notwithstanding the fact that the building has been completed
or not.
09. The maximum period for the revision of list is three years, there
is no bar in case the list of annual value is revised every year in
the circumstances so warrant.

10. The annual value of property hired or requisitioned by the

Government or let out at increased rent can be altered on the
basis of increase in gross rental value under the provisions of
section 71 (1) (d) of the Act by the Board without refereeing the
matter to Assessment Committee.

11. The Assessment Committee will come into the picture after
issuance of notice by the Board under section 67 & 68 (1) of the
Cantonments Act.

(a) To enquire and investigate the objections.

(b) To authenticate the assessment list.

c) After authentication of assessment list under section 69, same

shall not be referred again to Assessment Committee.

d) The assessment authenticated by the committee does not

require confirmation of the Board.

(e) The Assessment Committee is permanent feature of

Cantonment Administration.
12. Any amendment in the assessment list under section 71 is to be
made by the Board and the same shall not be referred to the
Assessment Committee for authentication. The amendment
made by the Board shall be final and subject to appeal under
section 84 as the opening words of section 84 are that “an
appeal against the assessment or levy of, or against the refusal
to refund any tax under this Act shall lie to the District
Magistrate or such other officer as may be empowered by the
Federal Govt. in this behalf”. The section clearly shows that
appeal is available against the assessment either made by
Board under section 71 or otherwise by the Assessment
Committee as appeal against the Assessment Committee only
has not been provided in section 84.
13 No Cantt Boar shall propose tax of a property showing the
annual rental value less as declared in the table of fair letting
value.

14. No official of Cantt Board shall sign any notice either proposed
or otherwise for calling meeting to the any taxpayer.

15 All officials serving in Cantt Board and dealing in any capacity

shall write down his / her name in a clear manner with
designation and preferably will place stamp below the
signature.

16. In accordance with the section 13 (2) of the General Clauses

Act, 1897, plural includes singular, and vice-versa. Therefore,
when a tax is for the first time imposed under section 66 on a
newly erected / re-erected building the provision of section 66
to 70 will operate. In other words in case of assessment of
individual buildings at a time when a fresh assessment list is
not under preparation, the assessment committee will have to
play its part.

ANNOUNCE IN OPEN COURT

(Adil Rafi Siddiqui)

Director Military Lands & Cantonments
Karachi Region Karachi