Madras HC quashes Arbitrary Property Tax Revision, Upholds Principles of Natural Justice [Read Order]
The Madras High Court held that the impugned order was passed without following the principles of natural justice
Madras HC – Madras High Court – Arbitrary Property Tax Revision – Tax Revision – Upholds Principles of Natural Justice – taxscan
Madras HC – Madras High Court – Arbitrary Property Tax Revision – Tax Revision – Upholds Principles of Natural Justice – taxscan
In a recent ruling, the Madras High Court quashed the arbitrary property tax revision and upheld principles of natural justice.
In this case, the assessee has filed the writ petition challenging the order of the Income Tax Commissioner demanding payment of Rs. 1,69,376 as property tax.
The counsel on behalf of the assessee contended that the petitioner was paying a sum of Rs. 43,897 as property tax every year. By the notification dated 30-03-2022 issued by the Tamil Nadu Government, the respondents had increased the tax by applying the increasing factor of 2.
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It was submitted by the assessee that if the amount was doubled, then it would amount only to Rs. 87,788. Thus it was submitted that the impugned order was passed without application of mind.
The HC observed that the assessee was not provided with an opportunity of a personal hearing before the impugned order was passed. Further stated that instead of increasing the factor by 2, the respondents increased the factor by 4, which was contrary to the above-mentioned government order.
The Madras High Court held that the impugned order was passed without following the principles of natural justice.
The bench further observed ‘that since the petitioner is paying Rs.43,894/-, he is permitted to pay by applying the increasing factor -2 i.e., a sum of Rs.87,788/- per term which includes arrears, if any in the past until the disposal of the present case by the authorities concerned.’
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The high court bench, comprising of Justice Krishnan Ramaswamy, set aside the impugned order and remanded the case back for reconsideration to pass fresh orders within a period of eight weeks from the date of receipt of a copy of this order. The assessee was represented by Mr. M. Velmurugan, and the department was represented by Mr. N. Umapathy.
To Read the full text of the Order CLICK HERE
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