Fresh assessment to be made to replace a retrospectively calculated assessment in the absence of property owner : Delhi High Court

IN THE HIGH COURT OF DELHI AT NEW DELHI Judgment delivered on: 29th July 2021 W.P.(C) 7059 2021& CM APPLN. 22293 2021 M S AMRAPALI STEELS PVT. LTD. Petitioner NORTH DELHI MUNICIPAL CORPORATION..... Respondent Advocates who appeared in this case: For the Petitioner : For the Respondents: Mr. Anand Prakash Standing Counsel with Ms. Varsha Arya Mr. Ayush Gupta Advocate Advocate for North DMC CORAM: HON’BLE MR JUSTICE SANJEEV SACHDEVA SANJEEV SACHDEVA J. The hearing was conducted through video conferencing. Petitioner impugns assessment order dated 10.06.2021 whereby the respondent Corporation has assessed the property of the petitioner retrospectively with effect from 01.04.2004 and demanded an amount of Rs. 21 60 425 as arrears of property tax including interest and penalty as Learned counsel for the petitioner submits that the petitioner was not given a personal hearing. He submits that the respondent Corporation has on 08.06.2021. W.P.7059 2021 not given credit for the amounts already deposited. He submits that approximately a sum of Rs. 3 lakhs have been paid which has not been accounted for by the Corporation. He submits that the property was measured in the absence of the petitioner and assessment order has been passed retrospectively in respect of portions of the property which were not even constructed in the year 2004 and were constructed in the year 2013. This is disputed by learned counsel for the respondent. Learned counsel submits that warrants of distress has been issued to the ICICI Bank Model Town to attach the bank account of the petitioner to an extent of Rs. 18 86 291 and as per his instructions the said amount has been attached by the bank. He however submits that without prejudice to the rights and contentions of the parties respondent Corporation is willing to give a fresh hearing to the petitioner. He prays that the amount attached by the bank be directed to be remitted to the Corporation. In view of the facts and circumstances of the case and the above submissions this petition is disposed of with the following directions: The impugned assessment order dated 10.06.2021 is set aside. The matter is remitted to the Deputy Assessor & Collector for fresh assessment. Petitioner shall appear before the Deputy Assessor & Collector on 09.08.2021 at 11.00 a.m. along with W.P.7059 2021 documents in support of his assessment. Petitioner would be at liberty to file further objections if any on the said date. The officers of the Corporation shall measure the the petitioner and thereafter after giving an opportunity of a personal hearing pass fresh assessment order. the presence of ICICI Bank Model Town is directed to remit a sum of Rs. 9 50 000 to the respondent Corporation out of the attached amount and the remaining attached amount shall be retained by the bank which shall be subject to the fresh assessment order to be passed by the respondent Corporation. On remittance of the said amount of Rs. 9 50 000 and remaining attached amount retention of attachment on the bank account of the petitioner shall be lifted. The Deputy Assessor & Collector shall pass a fresh assessment order within a period of two months from The petition is disposed of in the above terms. Copy of the order be uploaded on the High Court website and be also forwarded to learned counsels through email by the Court Master. SANJEEV SACHDEVA J JULY 29 2021 W.P.7059 2021 

Summary: The order for assessment of property is required to respect certain rights to the property holder which includes his/her right to be present when the assessment is made. It is exercised along with right to raise objections regarding the assessment made. This was held in the judgment passed by a single bench judge comprising HON’BLE MR JUSTICE SANJEEV SACHDEVA, in the matter of M/S AMRAPALI STEELS PVT. LTD. V. NORTH DELHI MUNICIPAL CORPORATION dealt with an issue where the petitioner impugned the assessment order of a property as the property was measured in the absence of the petitioner and the assessment order had been passed retrospectively in respect of portions of the property which were not even constructed in the year considered. The respondent-Corporation had assessed the property of the petitioner retrospectively with effect from 01.04.2004 and demanded an amount of Rs. 21,60,425/- as arrears of property tax including interest and penalty as on 08.06.2021. The Petitioner questioned this assessment order dated 10.06.2021 stating that the property was measured in the absence of the petitioner and assessment order has been passed retrospectively in respect of portions of the property which were not even constructed in the year 2004 and were constructed in the year 2013. The counsel for the petitioner also submits that the petitioner was not given a personal hearing and the respondent-Corporation has not given credit for the amounts already deposited. He submits that approximately a sum of Rs. 3 lakhs have been paid which has not been accounted for by the Corporation. The counsel for the respondent disputed that and submitted that warrants of distress has been issued to the ICICI Bank, Model Town to attach the bank account of the petitioner to an extent of Rs. 18,86,291/- and as per his instructions the said amount has been attached by the bank. The counsel also stated that the respondent-Corporation is willing to give a fresh hearing to the petitioner and  He prays that the amount attached by the bank be directed to be remitted to the Corporation.