Enhancement of holding tax: Orissa HC directs Sambalpur Municipal Corporation to fresh adjudication [Read Order]

holding tax - tax - Enhancement of holding tax - Orissa High Court - Sambalpur Municipal Corporation - fresh adjudication - taxscan

The Orissa High Court (HC) directed the Sambalpur Municipal corporation to fresh adjudication since they failed to consider the objection raised by the assessee on the enhancement of holding tax.

There was an earlier assessment assessing the Petitioner’s, Maa Samaleswari Automobiles building by the Sambalpur Municipal Corporation as it was then operating raising the holding tax to Rs.1,19,858/-. The proposal for further assessment is only made by way of notice dated 22.2.2023 enhancing the holding tax from Rs.1,19,858/- to Rs.3,12,609/-  per annum.

It was argued that the department failed to state why the case of the petitioner shall not be allowed and prayed to direct the department to receive the holding tax as earlier paid by the petitioner in respect of his building under Sambalpur Municipal Corporation.

It was contended by the petitioner that there has been an objection to the impugned notice intending enhancement in the holding tax, which is not being taken up for consideration.

A Single Member bench comprising Justice Biswanath Rath observed that the Petitioner was required to be considered by the Sambalpur Municipal Corporation involved and remitted the matter to the Sambalpur Municipal Corporation for adjudication of the objection of the Petitioner after granting the opportunity to personal hearing of the Petitioner.

The requirement of disposing off the objections against the notice issued under section 148 by a separate and speaking order is a mandatory requirement. A non-speaking order or order without proper reasons being spelt out would be bad in law and would be liable to be quashed. It was evident that the department failed to do so.

While allowing the petition, the Court ordered the Petitioner to deposit without prejudice to its rights and contentions at this level a sum of Rs.1,75,000/- (rupees one lakh seventy-five788888 thousand) at least within a period of two weeks.

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