The Madras High Court has set aside the order of the Commissioner of the Greater Chennai Corporation to remit the property tax arrears.
The bench of Justice Dr. Anita Sumath observed that the Corporation failed to issue notice prior to the reassessment proceedings under the Section 137B of the Chennai Municipal Corporation Act, 1919.
The Section 137B of the Chennai Municipal Corporation Act mentioned about the power to assess the income escapement from the assessment. The commissioner may serve a notice who escaped the property tax for 6 years for a re-assessment.
The petitioner, Andhra Kala Sravanthi has challenged the order dated levying property tax under the provisions of the Chennai City Municipal Corporation Act and Water and Sewerage Tax under the provisions of the Chennai Metropolitan Water Supply and Sewerage Act, 1978 and being a notice in Form 10 being a final assessment order.
The bench added that undoubtedly the necessity to assess the petitioner would depend on the view to be taken by the Commissioner on the exemption application. Also, the petitioner has challenged the veracity of those orders on other grounds as well stating that no notice was issued prior to passing order of re-assessment under Section 137B of the Chennai Municipal Corporation Act.
Further observed that no notices were not available to disprove the submissions of the petitioner. Thus, the order calling upon the petitioner to remit arrears of property tax up to the second half of 2021 – 2022 was set aside.
The petitioner was additionally directed by the High Court to appear on June 15, 2023, without further notice. The liberty granted under both orders shall be revoked without further mention of the petitioner if the petitioner is not present on June 15, 2023, and the assailed orders will stand.
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