Fixation of Arbitrary Annual Valuation of Building: Calcutta HC sets aside Property Tax Assessment Order [Read Order]

The Calcutta High Court has quashed an order passed by the Municipal Assessment Tribunal (MAT) of Kolkata Municipal Corporation that reduced the annual valuation of a building. The case has been remanded to a fresh hearing.

The case involved a dispute over the annual valuation of a five-story building. The petitioner, Kolkata Municipal Corporation challenged the order, arguing that the Tribunal did not follow the proper procedure.

Advocate Alak Kumar Ghosh, appearing on behalf of the Kolkata Municipal Corporation, submitted that the Tribunal did not consider the facts that the case premises were newly constructed and valuation was fixed for the first time considering the present market rent prevailing at the locality for the assessment period of 4th quarter, 1999-2000 and 1st quarter of 2001-2002. It was contended that at the time of passing the impugned order, the Tribunal did not assign any reason as to how it had calculated the annual valuation of the premises in question, which were newly constructed.

The respondent, represented by Mr. Raghunath Chakraborty, submitted that the Tribunal has placed its reliance upon the judgment as passed by it for the premises no. 21, 91, Humayun Kabir Sarani, Kolkata and the present building is also situated in the same premises for which the impugned order was passed.

The single bench of Justice Prasenjit Biswas found that the Tribunal’s decision lacked any reasoning to justify the reduction in valuation, emphasising that the Kolkata Municipal Corporation Act and the Calcutta Municipal Corporation (Taxation) Rules lay down a specific procedure for assessing annual valuation. 

Additionally, the court pointed out that the Tribunal relied on a previous judgment concerning a different property, which was not an appropriate basis for assessing the valuation of the new building.

The court set aside the assessment order and directed the Tribunal to hear the matter afresh of the Municipal Corporation in strict compliance with the provisions of the aforementioned Act and Rules.

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