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2017 (9) TMI 1809 - SUPREME COURTInterpretation of statute - Section 126 of Delhi Municipal Corporation Act, 1957 - Amendment of assessment list - Whether notice under Section 126 of the Act which was received on April 4, 1998 i.e. after March 31, 1997 would be invalid as beyond the period of limitation prescribed as per Section 126(2) and (4) of the Act? - HELD THAT:- The notice as contemplated under Section 126, was given only on April 4, 1998. Such a notice was clearly not valid for revising the assessment list for the year 1997-98. Reason is obvious and does not need elaboration. The entire basis of an assessment, and in the present case amendment to assessment list, is the issuance of notice. This factor assumes considerable significance because the rateable value is sought to be made effective from commencement of the year in which the notice is given. Even, if the notice is given on the last date of the concerned year, it nevertheless relates back and the consequence of a higher rateable value follows. However, if the notice is not so issued before the expiry of an assessment year, assessment list cannot be amended for that year. Thus, on the basis of such a notice, there could not have been assessment for the Assessment Year 1997-98. When such a notice which received on April 4, 1998, whether it was open to the Assessing Officer to revise the assessment for the Assessment Year 1998-99 and Assessment Year 2001-02? - HELD THAT:- Since the notice was received when the Assessment Year 1997-98 had come to an end and Assessment Year 1998-99 had commenced, we have held that assessment list could not be amended from the year 1997-98. It is to be kept in mind that for the aforesaid reason, notice itself does not invalidate. Therefore, if it was not permissible to amend the list w.e.f. April 1, 1997, at the same time it could always be done w.e.f. April 1, 1998 as the notice had been received in that Assessment Year, namely, on April 4, 1998. In the instant case, though the date given in the notice was April 1, 1997, it was not permissible for the Corporation to release the tax from April 1, 1997 as the notice was not received in that Assessment Year but was received only in the next Assessment Year i.e. 1998-99. Therefore, the assessment carried out, which was done within three years from the issuance of notice i.e. the time stipulated by sub-section (4) of Section 126 of the Act, the assessment was otherwise valid and could be made applicable from April 1, 1998. Merely because the notice dated March 25, 1998 was received on April 4, 1998 cannot be a ground to defeat the liability to pay the tax, so determined, as a result of revision in the assessment even for subsequent years i.e. w.e.f. April 1, 1998. Appeal allowed in part.
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