The Aryavarth Express
Agency(Karnataka): The Karnataka High Court has laid out specific protocols that the Bruhat Bengaluru Mahanagara Palike (BBMP) must adhere to when revisiting the self-assessment of property tax. This directive comes in response to instances where property owners did not submit returns or were selected for random verification. Justice S Sunil Dutt Yadav emphasized the necessity of following the procedures outlined in the Bruhat Bengaluru Mahanagara Palike Act, 2020, noting that demands and notices must be preceded by an inspection in the owner’s presence to be valid.
The court’s instructions address scenarios of random scrutiny, evasion, incorrect filings, and refusal to cooperate during inspections, stipulating that the BBMP must notify property owners or occupants before any inspection and that during these inspections, owners must provide required information for reassessment. If a property owner obstructs the inspection process or fails to supply necessary details, the BBMP is authorized to estimate the tax based on its best judgment.
Furthermore, the guidelines detail the steps for reopening assessments in various situations, such as random checks, unfiled returns, or incorrect self-assessments, emphasizing the need for a thorough inspection and information gathering before reassessment. Penalties and interest will apply for revised demands, and property owners will have the opportunity to respond to reassessment notices.
Significantly, the court also addressed the timeframe within which assessments or reassessments can be made, stating that these actions must occur within five years of the tax return filing or the discovery of facts justifying reassessment. The BBMP is also empowered to resolve disputes regarding property classification, with its clarifications deemed final.
This judgment arose from a petition by Shariff Constructions challenging a sealing order and demanding the reversal of a tax notice. The court set aside the contested order, allowing the BBMP to proceed according to the outlined procedures, and noted the need to amend any Standard Operating Procedures conflicting with the statu
