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Madhya Pradesh High Court · body

2017 DIGILAW 1133 (MP)

Vidhi Chand Dharmshala Trust v. State of M. P.

2017-11-06

SHEEL NAGU

body2017
ORDER 1. The present petition under Article 226 of the Constitution of India has been filed praying for the following reliefs : It is, therefore, most humbly prayed that this Hon'ble Court may kindly be pleased to -- a) Allow the present petition; and , b) Quash Annexures P-1 and P-2; and , c) Respondents be directed to act as per order Annexure P-3: d) Declare the whole property of petitioner trust exempted from property tax; and/or, e) The tax deposited in lieu of 09 shops as property tax amounting to Rs.2,66,785/- may kindly be directed to be refunded to the petitioner trust; f) Any other relief which this Hon'ble Court deems fit in the facts and circumstances of the case may also be passed. 2. It is the contention of learned counsel for the petitioner that the property bearing Survey No. 519,533,534 of the petitioner trust situated on Plot No. 30678 over which constructed admeasuring of 25,200 sq. ft is said to be standing was exempted from property tax vide Annexure P-3 dated 24.10.2009 by virtue of being used exclusively for Public Charity (Dharamshala) under section 136-B of the Municipal Corporation Act, 1956 (Act of 1956 for brevity). However it is the grievance of petitioner that by the impugned notice(undated) arrears of property tax to the tune of Rs.74,04,079/- vide Annexure P-1 and total arrears of tax to the tune of Rs.80,55,193/- vide Annexure P-2 in respect of the same property was demanded. 3. It is the principal contention of learned counsel for the petitioner that there has been no fresh assessment of the property and the procedure provided for assessment of a part of property afresh under Part IV of Chapter XI of the Act of 1956 was not followed as no opportunity was afforded to the petitioner to submit his objections in regard to fresh assessment. 4. 4. On the other hand learned counsel for the Corporation relying upon Annexure R-1 submits that an inspection was carried out on 10.2.2016 of the property of the petitioner trust revealing that the same is being used for commercial purposes and not for charitable purposes, and therefore a bill claiming arrears of property tax of Rs.76,40,075/- was raised which led to issuance of Demand Letter under section 173 of the Act of 1956 whereafter a bill under sections 173 and 174 of the Act of 1956 was prepared demanding a sum of Rs.74, 16,452/- which comprises of various heads including property tax, consolidated tax, urban development cess, education cess and surcharges). 5. From a bare perusal of Annexure R-1, it is clear that the respondent Corporation without inviting objections and without following the procedure laid down for carrying out fresh assessment of property tax and ancillary taxes jumped to the conclusion that the property is chargeable to property tax. 6. In view of the above, this Court is of the considered view that Corporation failed to dwell into the essential function of determining liability of tax over the property by following the statutory provisions prescribed for assessment under Part IV of Chapter XI of 1956 Act. 7. Accordingly, the present petition is disposed of with a direction that the Corporation shall conduct fresh assessment of the property in question of the petitioner trust in terms of the procedure laid down in Part IV of Chapter XI of the Act of 1956 whereafter order shall be issued under section 148 of the Act of 1956 by the Commissioner against which the petitioner, if still aggrieved, shall be at liberty to approach the District Court by filing appeal under section 149 of the Municipal Corporation Act, 1956. 8. Consequently, Annexure P-1 and P2 stand quashed giving liberty to the respondent Corporation to proceed with fresh assessment for determining the exigibility of the property to property tax as per law and then proceed to levy and recover the same. 9. No cost.