The Hindu : Karnataka / Bangalore News : Even the dead must pay taxes, State tells court

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Saturday, May 31, 2008
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Karnataka

Karnataka - Bangalore

Even the dead must pay taxes, State tells court

Staff Reporter

High Court is hearing an appeal against a single judge order

Single judge had quashed a notice by the RTO directing the owner of the vehicle to pay tax
Lorry was registered in the name of Aithappa Bhandary on January 27, 1989

BANGALORE: The State Government on Friday told the Karnataka High Court that even the dead must pay taxes, if any movable or immovable property is still in their name.

The State made this submission when a Division Bench, comprising Justice K.L. Manjunath and Justice B.V. Nagaratna, was hearing its appeal against a single judge order that quashed a notice by the Regional Transport Officer of Mangalore and Deputy Commissioner of Transport, Shimoga, directing the owner of a transport vehicle to pay tax.

According to the State, a lorry was registered in the name of Aithappa Bhandary on January 27, 1989. Aithappa died on July 4, 1997, and the motor vehicle tax for the vehicle had been paid till June 30, 2000.

Soon after Aithappa died, his wife filed an application before the Mangalore RTO for non-use of the vehicle. The State said though Aithappa died on July 4, his wife did not bring it to the notice of the RTO though she applied for non-use certificate on June 30, 2000. The application for non-use was signed as “for” Aithappa. The RTO inferred that Aithappa was still alive and gave an endorsement in his name.

When the RTO subsequently came to know that Aithappa was dead, it investigated the matter. It later sent another endorsement on August 18, 2008 saying that the application for non-use of the vehicle could not be accepted. Moreover, the vehicle permit and taxation card had not been surrendered.

The Mangalore RTO and the Deputy Commissioner of Traffic, Shimoga, on March 22, 2005, and on November 25, 2008 respectively sent notices to Aithappa’s wife asking her to pay motor vehicle tax. Though the vehicle was not used and was parked on the premises of Aithappa house, the vehicle owners were liable to pay tax from July 1, 2000 to March 31, 2003.

Aithappa’s wife petitioned the High Court against the RTO and Deputy Commissioner of Traffic orders. A single judge allowed her petitions and quashed the notices. The State had filed an appeal against this order.

In its appeal, the State said if records contained the name of a person, tax would have to be paid by him. In this case, there was no intimation to the authorities that Aithappa had died. Therefore, an endorsement was issued in his name and the tax arrears were also billed in his name. Aithappa, therefore, had to pay the taxes due to the State.

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