A municipal law imposes a property tax, but a proviso leaves it unclear how the annual value of certain…
Mathuram Agrawal (1999) held that "In a taxing Act it is not possible to assume any intention or governing purpose of the statute more than what is stated in the plain…
Choose your answer
A municipal law imposes a property tax, but a proviso leaves it unclear how the annual value of certain buildings is to be fixed. The municipality asks the court to infer the legislature's evident aim of taxing such buildings at the highest value. Applying Mathuram Agrawal v. State of Madhya Pradesh (1999), how should the court respond?
Answer and explanation
Correct answer D
Mathuram Agrawal (1999) held that "In a taxing Act it is not possible to assume any intention or governing purpose of the statute more than what is stated in the plain language". If a component of the tax is ambiguous, there is no tax in law. Using the mischief rule to fill the gap in the revenue's favour would mean imposing tax by inference.
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