The power to re-open assessments is constrained by the specified period in the Act, and the notice must contain specific and pointed particulars. The 'Use Factor' under the Unit Area Method depends on the actual use of the property and is not solely determined by the amount of rent received.

1. M/s Amrit Estate (Pvt.) Ltd., petitioner in W.P.(C) 6274/2017 is respondent in W.P.(C) 982/2017. For the sake of convenience, M/s Amrit Estate (Pvt.) Ltd. is referred to as the “petitioner” and South Delhi Municipal Corporation is referred to as “Corporation”.

2. The petitioner is the owner of property No. E-1A, Kailash Colony, New Delhi. After the introduction of the Unit Area Method (UAM) by the Corporation, the petitioner regularly filed the self assessment format and deposited the tax within the stipulated time from the year 2004-05 to 2012-13.

3. Vide notice dated 7th September, 2012 under Section 123D of Delhi Municipal Corporation (Amendment) Act, 2003, the respondent issued a show cause notice to the petitioner to show cause why the assessment should not be re-opened. The relevant portion of the notice is reproduced hereunder :-

“M/s Amrit Estate (Pvt.) Ltd.

E-1A, Kailash Colony, New Delhi-110048.

Sub:- Assessment of Property No. E-1A Kailash Colony,

New Delhi-110048.

Under Section 123D of DMC (Amendment) Act, 2003.

Whereas, as per available record, Selv-Assessment Property Tax Return, as required U/s 123 & 123B of the DMC Act has not been found filed by you for the period 2004-056 to 2007-08 & 2010-11.

OR

Whereas, in the Self-Assessment Property Tax Return, filed for the year 2012-13 the following discrepancies have been found :

Use factor wrong in PTR

And, therefore, invoking the powers conferee U/s 123D of the DMC Act, you are hereby given an opportunity to appear before the undersigned in person or through your authorized representative on 13 September, 2012 at 3 p.m. and to produce the relevant evidence and documents in support of your case of property at (illegible) and as to why the assessment should not be made/revise/re-opened.

You may bring to our attention any stay/direction from any Court with regard to assessment/payment of property tax or having already, filed the correct PTR alongwith the payment of due tax, failing which it will be presumed that you have nothing to say and, thereafter, the assessment will be presumed that you have nothing to say and; thereafter, the assessment will be finalized on the basis of information available, without further communication to you, thereby precluding you from objecting to any assessment made. You also be liable for interest or/and penalty in addition to tax as per provisions of DMC Act.”

4. On 03rd October, 2012, the respondent issued a show cause notice under Section152A of Delhi Municipal Corporation (Amendment) Act, 2003 to show cause why prosecution should not be initiated under Section 152A of Delhi Municipal Corporation (Amendment) Act, 2003.

5. On 22nd March, 2013, the Corporation passed an ex-parte assessment order for the years 2004-05 to 2011-12 to which the petitioner made a representation which was partly allowed vide order dated 02nd May, 2013.

6. The petitioner preferred appeals against the assessment order before the Municipal Taxation Tribunal, Delhi which were allowed by a common order dated 15th May, 2015 whereby the learned Municipal Taxation Tribunal set aside the assessment order dated 22nd March, 2012 as modified on 02nd May, 2013 and remanded the matter back to the Corporation for fresh determination.

7. The Corporation has challenged the order of the Municipal Taxation Tribunal before this Court in W.P.(C) 982/2017. Vide order dated 12th July, 2017, this Court directed the Assessing Authority to pass the fresh assessment order which shall be considered by this Court.

8. Vide order dated 12th January, 2016, the Assessing Authority passed an assessment order which has been challenged by the petitioner in W.P.(C) 6274/2017.

9. Learned counsel for the petitioner urged at the time of hearing that the Corporation had no power to re-open an assessment beyond a period of 12 months and, therefore, the show cause notice dated 07th September, 2012 and the assessment order dated 12th January, 2016 are liable to be set aside. Reliance is place on Springdales S