The BBMP head office Shriram B N
Karnataka

Property owners move HC against BBMP tax notice

Bengaluru property owners challenge BBMP's tax demand in High Court. Court orders property inspection, reassessment, and seeks owner involvement. Some question BBMP's authority to reopen assessments without rules.

Express News Service

BENGALURU: Hundreds of property owners in the city have moved the High Court of Karnataka questioning the demand notice issued by BBMP’s assistant revenue officers asking them to pay tax with penalty, stating that their properties have not been assessed properly under the self-assessment of property tax scheme.

Hearing their petitions, Justice S Sunil Dutt Yadav directed the BBMP to inspect such properties in the presence of their owners and reassess the tax. It also directed the BBMP not to take any coercive action against property owners based on the demand notice issued, till the next date of hearing.

Questioning the demand notice issued in the last two weeks on the grounds that the measurement relied upon by the BBMP while calculating tax is at variance as declared by them in the self-assessment returns, the petitioners contended that the inspection, based on which the revenue inspector had prepared a report, was done without issuing a notice to them.

Taking note of the factual divergence in the measurements, the court said it is deemed appropriate for the BBMP to conduct the property inspection in the presence of owners and tenants.

The court said the BBMP has to prepare a report after eliciting all facts that would constitute a ground for reassessment, including making measurements and delineating the rented and self-occupied portions and the date on which it is let out and the nature of usage.

The BBMP is at liberty to seek information and documents related to the property. The petitioners are at liberty to furnish such documents to put forth their cases, the court said. Some petitioners contended that the standard operating procedure issued by the BBMP chief commissioner to re-open the self-assessment of property tax is without the authority of law and the same can’t be done in the absence of rules.

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