Failure to submit returns or provide adequate details in the return

(1) If the Chief Commissioner believes or has reasonable cause to believe that the proprietor of entertainment has not furnished all the details in the returns or if the Chief Commissioner is of the reasonable belief that the details in the re-assessed returns are untrue or the tax due has been underpaid, the Chief Commissioner shall issue an order of re-assessment against such proprietor. (2) If the proprietor of entertainment has failed to submit returns under section 169 the Chief Commissioner shall have the power to issue an order of re-assessment against such proprietor. (3) If the Chief Commissioner believes or has reasonable cause to believe that the complimentary ticket issued by the proprietor of entertainment does not reflect the true value of the ticket, the Chief Commissioner shall have the power to assess the value of the complimentary ticket and the criteria for which may be provided for under the Rules: Provided that, upon the assessment of the value of the complimentary ticket, the Chief Commissioner shall issue an order to the proprietor of entertainment to submit the revised returns which shall reflect the value of complimentary ticket as assessed by the Chief Commissioner. Provided further that, the revised returns shall be filed within fifteen days of the receipt of the order. (4) The Chief Commissioner shall, for the purposes of sub sections (1), (2) and (3), have the power to enter the place of such entertainment and inspect the surroundings and relevant documents. (5) For the purposes of sub section (1), the Chief Commissioner shall have the power to search and seize any books, records, accounts, registers, tickets and portions thereof and any article so seized shall be retained by Chief Commissioner for not more than fifteen days from the date of seizure. (6) The Chief Commissioner, if necessary, may take copies, or cause copies to be taken, of any books, records, accounts, registers, tickets and portions thereof. (7) If the Chief Commissioner, upon inspection, is satisfied that the proprietor of entertainment has not furnished all the details required under Section 170, the Chief Commissioner shall issue a show cause notice and shall provide an opportunity to be heard to such proprietor of entertainment and may levy a fine as prescribed under the rules. fix any lumpsum amount as annual tax, irrespective of zonal classification, in respect of,- (a) a built-up area having less than 300 sq.ft., in a slum area declared as such by the Karnataka Slum Clearance Board or the Chief Commissioner, Bruhat Bengaluru Mahanagara Palike; (b) an area used as parking area in a non-residential building and being charged for its use by the owner or the occupier: and (c) any other class of building or structure as he deems fit. Provided also that, the depreciation shall be capped at a maximum of sixty percent. Provided also that, the vacant land shall be assessed at a rate not less than 0.025 percent (rupees twenty five per lakh) and not more than five percent of the taxable capital value of the land. Provided also that, after the taxable capital value based property tax system is brought into force and there is no revision of the values of the properties or land under section 45B of the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957) in a year, the property tax shall stand enhanced by five percent every such year. Provided also that, as and when the Government notifies value of land and building under section 45B of Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957) the revised property tax rates based on the new revised value of properties or land shall be calculated and compared with the prevailing property tax rates and the higher of the two shall be adopted.” (iii) in sub-section (8), the third proviso shall be omitted. (iv) in sub-section (11), the words “unit area value and” shall be omitted. (v) in sub-section (12), the word, “random” shall be omitted. (vi) in sub-section (13), the word, “random” shall be omitted. (vii) in sub-section (15),- (a) the word, “random” shall be omitted; and (b) for clause (b), the following shall be substituted, namely:- “(b) if any property or land is liable to pay property tax but remains un-assessed and outside the taxable property records list or upon reassessment, the property tax is found more than five percent than the tax remitted, the evaded tax shall be payable together with penalty equal to the tax so evaded along with interest for the difference in tax paid and payable calculated at nine percent per annum. Illustration: If payable tax is rupees 150 for the year 2021 but actual property tax paid is rupees 100 then evaded tax amount is rupees 50. If the payment is happening on 23rd December 2023, then the following shall be payable – (i) Evaded Property Tax Amount = Rs 50/- (ii) Penalty for evasion = Rs 50/- (iii) 9% interest on the evaded property tax of Rs 50/- shall be calculated as follows – (c) 9% interest on Rs 25/- which is 50% of Rs 50/-, from 31st May 2021 until date of payment; and (d) 9% interest on the rest Rs 25/- which is 50% of Rs 50/-, from 30th November 2021 until date of payment. This provision shall also apply with respect to the unpaid demand where demands are already issued but for which the concerned person has not paid the demanded dues: Provided that the payments already made as per previous provision shall not be refunded nor adjusted against future liabilities. Provided further that the penalty payable by residential properties which have tiled or sheet roof (non-RCC) and is not more than 1000 Sq Ft, have only the ground floor and is self-occupied, shall be 25% of the evaded tax. Provided also that no penalty shall be payable by residential properties which are hutments, Government housing for poor, houses declared as slum by the Karnataka Slum Development Board or by Bruhat Bengaluru Mahanagara Palike, where such houses are self-occupied and have an area less than 300 square feet. Provided also that in case of properties which are in the Property tax registers but fail to pay the property tax, by end of the financial year in which the tax becomes due, shall, for the twelve months after the end of the financial year in which the tax became due, pay an interest at a rate of 15% per annum on the unpaid tax, calculated until the date when the tax is paid. Provided also that after end of said twelve months that is from second year after the end of the financial year in which the tax became due, any tax still unpaid shall pay a penalty equal to the unpaid tax plus the unpaid tax with interest on the unpaid tax at a rate of 9% per annum. Provided also that in case of existing defaulters the said twelve month period shall be deemed to start from 1.4.2024 and any tax out of the said dues still unpaid as on 1.4.2025, shall pay a penalty equal to the unpaid tax plus the unpaid tax with interest on the unpaid tax at a rate of nine percent per annum thereafter. Provided also that as a one-time measure, in order to bring all the tax defaulters, un-assessed properties and those liable for reassessment up-to-date with respect to their tax payments, the interest otherwise liable to be paid under this section for unpaid or reassessed tax, shall be exempted for the payments made until 31st July 2024. Provided that this provision shall be applicable prospectively. (viii) for sub-section (16), the following shall be substituted namely:- “(16) The assessment of un-assessed properties or the reassessment of the properties already paying the property tax under this section may be made at any time when evasion is noticed or justified circumstances arise for the same: Provided that in case of residential properties and the properties with a single ID in the Property Tax registers of the Bruhat Bengaluru Mahanagar Palike which have mixed use as residential and non-residential, the arrears of the property tax for the under-assessed or un-assessed properties, the applicable penalties and the interest payable, shall be limited to five years even if the un-assessment or the under-assessment of property tax exceeds five years” (ix) in sub-section (18), words “unit area value” shall be omitted.