Kerala HC Upholds Reassessment of Building Tax for Increased Plinth Area Under Section 5(4) [Read Judgment]

Kerala: The Kerala High Court has dismissed a challenge to the reassessment of building tax following additional construction, holding that Section 5(4) of the Kerala Building Tax Act, 1975 expressly permits fresh assessment based on the total plinth area when extensions or improvements are made, while granting credit for taxes already paid.

Justice Ziyad Rahman A.A., in a judgment dated November 20, 2025, addressed Writ Petition (Civil) No. 43431 of 2025 filed by P.T. Vincent and Celine Vincent, joint owners of a building situated in Survey No. 274/7 of Thodupuzha Village, Idukki District.

The petitioners, represented by Advocate George Mathew and his team, had initially obtained a building permit for a plinth area of 3,641.32 square meters. However, they completed only the first phase, covering 2,332.42 square meters, for which the Thasildar (3rd respondent) conducted the assessment under the Kerala Building Tax Act, 1975, and an amount of ₹3,92,400 was paid.

Subsequently, the petitioners carried out further construction, increasing the total plinth area to 3,580.19 square meters. The Thasildar issued a fresh assessment order dated October 23, 2025, directing payment of additional tax. This order was challenged in the present writ petition.

Senior Government Pleader Reshmitha R. Chandran appeared for the respondents.

After hearing both sides, Justice Rahman held that the challenge was untenable, observing:

“Even going by the pleading in the writ petition and the documents produced, the petitioners had carried out additional constructions after the initial construction, which was subjected to assessment under the Kerala Building Tax Act.”

The court examined Section 5(4) of the Kerala Building Tax Act, 1975, noting that it:

“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.”

Justice Rahman further noted that the reassessment order had already given credit for the amount previously remitted during the first assessment, stating:

“It is discernible from Ext.P6 that the amount already remitted by the petitioners at the time of the first assessment has been duly accounted for.”

Since the additional construction was an admitted fact, the Court held:

“Nothing would preclude the 3rd respondent from making a fresh assessment taking into account the total plinth area of the building, in light of the statutory stipulations contained in Section 5(4) of the Kerala Building Tax Act, 1975.”

The judgment clarified that reassessment following additional construction does not amount to double taxation but operates as a statutory mechanism ensuring proper levy on the entire constructed area, while protecting taxpayers through mandatory credit for amounts already paid.

The Court concluded:

“I do not find any justifiable ground to entertain this writ petition,”

and dismissed the petition.

Case Title: P.T. Vincent & Anr. vs. State of Kerala & Ors.

[Read Judgment]