Failure to Adhere to Statutory Procedures in Property Tax Valuation Leads to Miscarriage of Justice: Calcutta High Court Sets Aside Tribunal’s Order

In a significant judgement delivered by The Hon’ble Justice Prasenjit Biswas of the High Court at Calcutta, the Court has overturned the order of the Municipal Assessment Tribunal pertaining to the annual valuation of property for municipal taxation. The case, titled The Kolkata Municipal Corporation Versus Sri Susanta Das, addressed crucial issues under the Kolkata Municipal Corporation Act, 19’0, and the Calcutta Municipal Corporation (Taxation) Rules, 1987.

Brief on the Legal Point: The revisional application under Article 227 of the Constitution of India challenged the order of the Municipal Assessment Tribunal regarding the annual valuation of premises no. 99A, Humayun Kabir Sarani, Kolkata. The Tribunal had modified the valuation determined by the Hearing Officer of the Kolkata Municipal Corporation, leading to the present legal dispute.

Facts and Issues: The issue arose from a disagreement over the annual valuation of a property for municipal taxation. The opposite party, a flat owner, had challenged the initial valuation, leading to a reduction by the Hearing Officer. However, this valuation was further modified by the Tribunal, prompting the current litigation.

Jurisdiction and Procedure: The Court observed that the Tribunal failed to provide a reasoned justification for altering the Hearing Officer’s order, thus misapplying its jurisdiction and leading to a miscarriage of justice.

Statutory Obligations: The Tribunal’s decision was critiqued for not adhering to mandatory statutory procedures under the Kolkata Municipal Corporation Act and the Calcutta Municipal Corporation (Taxation) Rules.

Reliance on Past Judgments: The Tribunal’s reliance on past judgments without relevance to the current case was deemed inappropriate.

Reasoning and Documentation: The Court highlighted the Tribunal’s failure to record reasons for its decision and its neglect in following procedures laid down in the Act and the Rules.

Decision: The High Court set aside the impugned order of the Municipal Assessment Tribunal and directed a fresh adjudication in strict compliance with the relevant provisions of the Kolkata Municipal Corporation Act, 1980, and the Calcutta Municipal Corporation (Taxation) Rules, 1987.

Date of Decision: 10^th April 2024

The Kolkata Municipal Corporation Versus Sri Susanta Das