Dosti Realty Ltd. Vs Deputy Commissioner (Bombay High Court)
Bombay High Court Sets Aside Thane Local Body Tax Assessments and Remands Cases for Fresh Reasoned Orders
The Bombay High Court has set aside a group of Local Body Tax (LBT) assessment orders passed by the Thane Municipal Corporation, citing a failure to provide reasoned decisions. The court, in its order, remanded the cases back to the corporation’s Designated Officer for fresh adjudication, directing that the petitioners be given a proper opportunity to be heard and that new orders be passed within a specific timeframe. The petitions were filed by various assessees, including Dosti Realty Ltd., challenging the validity of the assessment orders on procedural grounds.
The primary ground for challenge in these petitions was that the impugned orders, all dated April 25, 2025, failed to address the specific contentions and grounds raised by the petitioners during the assessment proceedings. The petitioners argued that the orders lacked the necessary reasoning required by law to justify the determination of the Local Body Tax under Section 406 (6) (1) of the Maharashtra Municipal Corporation Act. Consequently, the assessees had also received consequential demand notices under Rule 33 (11) of the Local Body Tax Rules.
