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IN THE HIGH COURT OF DELHI AT NEW DELHI
Sanjeev Sachdeva, J.
Rohini Educational Society & Anr. - Appellants
Versus
North Delhi Municipal Corporation & Ors. - Respondents
W.P.(C) 9020/2021 & CM Appl.28036/2021, 28037/2021 & 28041/2021
Decided On : 26-08-2021
Property Tax - Assessment Order - The court quashed the demand notice and property tax bills, remitted the matter to the Assessing Authority, and directed the authority to pass a fresh order after giving a personal hearing to the petitioner.
Fact of the Case:
The petitioner challenged the demand notice and property tax bills issued by the respondent for the period 2020-2021 and 2021-2022, citing incorrect application of occupancy factor and lack of hearing granted prior to the impugned order.
Finding of the Court:
The court accepted the petitioner's contentions, quashed the impugned notice and tax bills, and remitted the matter to the Assessing Authority for a fresh order after granting a personal hearing to the petitioner.
Issues: Incorrect application of occupancy factor, lack of hearing granted to the petitioner prior to the impugned order.
Ratio Decidendi: The court emphasized the importance of granting a hearing to the petitioner before passing an assessment order and acknowledged the error in the computation, leading to the quashing of the impugned notice and tax bills.
Final Decision: The petition was allowed, and the court directed the Assessing Authority to grant a personal hearing to the petitioner and pass a fresh order.
JUDGMENT
Sanjeev Sachdeva, J.:-- (Oral)
1. The hearing was conducted through video conferencing.
2. Petitioner impugns demand notice dated 19.03.2021 along with the property tax bills dated 08.07.2021 and 06.08.2021 issued by respondent No. 2 for the period 2020-2021 and 2021-2022.
3. Learned counsel for the petitioner submits that the assessing authority has applied occupancy factor 3 whereas occupancy factor 1 should have been applied.
4. Learned counsel further submits that the petitioner has been regularly filing the property tax returns and no show cause notice or hearing was granted to the petitioner prior to passing of the impugned order.
5. Issue notice. Notice is accepted by learned counsel appearing for the respondents.
6. Learned counsel appearing for the respondents submits that on account of an error some incorrect computation has been done in the assessment order and in view of the submission of the petitioner that no hearing has been granted, respondent Corporation is willing to grant a hearing to the petitioner and thereafter pass a fresh speaking assessment order.
7. In view of the above, impugned notice dated 19.03.2021 and the consequent property tax bills dated 08.07.2021 and 06.08.2021 are quashed.
8. The matter is remitted to the Assessing Authority. Petitioner shall file additional reply/objections, if any within a period of two weeks. Thereafter the assessing authority shall pass a fresh order after giving a personal hearing to the petitioner.
9. Petition is allowed in the above terms.
10. Copy of the Order be uploaded on the High Court website and be also forwarded to learned counsels through email.
Procedural fairness requires that a taxpayer is entitled to a personal hearing before tax assessment orders are finalized.
Proper opportunity of hearing and clear show cause notice are essential before passing an assessment order.
Procedural fairness requires clear communication of discrepancies and an opportunity for defense in tax assessment processes.
A property tax assessment must be preceded by a specific and detailed show cause notice; otherwise, the assessment is invalid.
The principle of natural justice and the requirement for factual accuracy in assessment orders were central to the court's decision.
Property tax – Assessment - Petitioner/authorized representative shall appear before Assistant Assessor and Collector, ASC Department and produce requisite documents in support of assessment.
Quash of Assessment – Demand notice - Order records to the contrary that no response has been received from the recorded owner with regard to the said notice.
The assessing authority must consider submitted objections before amending the assessment list, ensuring compliance with statutory obligations and providing fair opportunity for hearing.
Property assessments must adhere to procedural requirements, ensuring notice and the right to a hearing before final orders are made.
Taxation - Assessment - Impugned order is not sustainable as same has been passed contrary to sub-section (2) of Section 72.
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