Back
IN THE HIGH COURT OF DELHI
Sanjeev Sachdeva, J.
National Public School - Appellant
Versus
North Delhi Municipal Corporation - Respondent
W.P.(C) 7493 of 2021
Decided On : 27-08-2021
JUDGMENT
Sanjeev Sachdeva, J. (ORAL)
CM APPL.23516/2021 (exemption)
Exemption is allowed subject to all just exceptions.
W.P.(C) 7493/2021 & CM APPL.23515/2021
1. The hearing was conducted through video conferencing.
2. Petitioner impugns show cause notices dated 03.11.2020 and 19.03.2021 and an assessment order dated 07.07.2021.
3. Learned counsel for the petitioner submits that petitioner has been regularly filing its property tax returns and depositing the property tax with the respondent Corporation.
4. Learned counsel for the petitioner submits that the show cause notice dated 03.11.2020 and 19.03.2021 do not contain any details and do not specify the error on the part of the petitioner in filing the property tax returns.
5. Learned counsel further submits that even the assessment order dated 07.07.2021 is a non speaking order and also does not contain any details of the computation of property tax.
6. Issue notice. Notice is accepted by learned counsel appearing for the respondent.
7. Learned counsel for the respondent concedes that the show cause notices as well as the order dated 07.07.2021 are bereft of any details.
8. Learned counsel concedes that no assessment order has been passed after the show cause notices and the order dated 07.07.2021 is in fact a demand letter and not an assessment order.
9. Learned counsel appearing for the respondent under instructions submits that the show cause notices dated 03.11.2020 and 19.03.2021 and the consequent demand dated 07.07.2021 be deemed to have been withdrawn without prejudice to the right of the respondent Corporation to issue a proper show cause notice under Section 123D in accordance with law.
10. In view of the above, petition is allowed. Show cause notices dated 03.11.2020 and 19.03.2021 are set aside and the consequent demand dated 07.07.2021 is also set aside.
11. This would be without prejudice to the right of the respondent to issue a notice under Section 123D in accordance with law. On issuance of the notice an opportunity of filing a response and a personal hearing shall be granted to the petitioner.
12. All rights and contentions of parties are reserved.
13. Copy of the Order be uploaded on the High Court website and be also forwarded to learned counsels through email.
A property tax assessment must be preceded by a specific and detailed show cause notice; otherwise, the assessment is invalid.
Procedural fairness requires clear communication of discrepancies and an opportunity for defense in tax assessment processes.
Proper opportunity of hearing and clear show cause notice are essential before passing an assessment order.
Procedural fairness requires that a taxpayer is entitled to a personal hearing before tax assessment orders are finalized.
Court reinforces the need for proper assessment procedures in property tax matters, emphasizing compliance with prior judicial directives and the provision of fair hearing.
Property tax – Assessment - Petitioner/authorized representative shall appear before Assistant Assessor and Collector, ASC Department and produce requisite documents in support of assessment.
Assessment orders cannot be issued without prior show cause notices to relevant parties, ensuring procedural fairness.
The court's decision was influenced by the interpretation of the petitioner's status as a tenant and the Corporation's right to issue a fresh show cause notice to the owner before passing a new asses....
The principle of natural justice and the requirement for factual accuracy in assessment orders were central to the court's decision.
The right to a fair hearing necessitates an opportunity for a personal hearing before coercive actions related to property tax assessment are undertaken.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
