Allowed

Dr. B. R Ambedkar Educational v. State of Karnataka

Karnataka HC7 Jul 2023WP/3931/2023

Case brief

AI extract

What is this about?

An educational trust challenged the levy of property tax by the Bruhath Bengaluru Mahanagara Palike. The Court allowed the petition, quashed the demand notice and the 2021 Circular citing a 2023 amendment to the BBMP Act that reinstated tax exemptions for recognized educational institutions.

What did the court decide?

The writ petition is allowed; the impugned demand notice dated 02.01.2023 is quashed; and the Circular dated 29.03.2021 is quashed.

Dr. B. R Ambedkar Educational Vs State of… — Pension and Retirement Benefits | Karnataka HC (2023)

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NC: 2023:KHC:23577 WP No. 3931 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 7^TH DAY OF JULY, 2023

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BEFORE

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THE HON'BLE MR JUSTICE R DEVDAS

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WRIT PETITION NO.3931 OF 2023 (LB-BMP)

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BETWEEN:

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DR. B. R AMBEDKAR EDUCATIONAL

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AND CHARITABLE TRUST (R)

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REPRESENTED BY ITS TRUSTEE

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MRS PREMA

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AGED ABOUT 38 YEARS D/O LATE MR C RAJU O/A NO 5, MURUGESH MUDALIAR ROAD FRAZER TOWN, BANGALORE 05

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…PETITIONER

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(BY SRI. NITIN A M., ADVOCATE)

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Digitally signed by JUANITA THEJESWINI Location: HIGH COURT OF KARNATAKA

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AND:

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STATE OF KARNATAKA

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REPRESENTED BY ITS CHIEF SECRETARY, VIDHANA SOUDHA, BANGALORE-01

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CHIEF COMMISSIONER BRUHATH BENGALURU MAHANAGARA PALIKE, MAHADEVAPURA ZONE, WHITE FIELD MAIN ROAD, BANGALORE- 48

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ASSISTANT REVENUE OFFICER BRUHATH BENGALURU MAHANAGARA PALIKE,

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NC: 2023:KHC:23577 WP No. 3931 of 2023

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HORAMAVU SUB-DIVISION BANGALORE- 560113

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…RESPONDENTS

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(BY SRI. NITHYANANDA K.R., AGA FOR R1 SRI. PAWAN KUMAR, ADVOCATE FOR R2 & R3)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE NOTIFICATION HAVING REFERENCE NO. JA(KO)/PR 2607/2020-21 DATED 29/03/2021 I.E., ANNEXURE-D ISSUED BY R-3 NOTIFYING THE PETITIONER TRUST THAT THE PETITIONERS ARE NOT ENTITLED FOR TAX EXEMPTION AS PER SECTION 152 OF THE BBMP ACT AND ETC.,

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THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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R.DEVDAS J., (ORAL):

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The petitioner, an educational institution is before this Court aggrieved of the demand notice dated 02.01.2023 raised by the respondent-Bruhath Bengaluru Mahanagara Palike, seeking payment of property tax. The petitioner has also called in question the provisions contained in Section 152(1)(i)(b) of the Bruhath Bengaluru Mahanagara Palike Act, 2020 (hereinafter referred to as

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NC: 2023:KHC:23577 WP No. 3931 of 2023

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the ‘BBMP Act’ for short); Circular dated 29.03.2021 issued by the second respondent-Commissioner, BBMP etc.

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It appears that the Karnataka Municipal

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Corporations Act, 1956 which was earlier governing the municipal area including the BBMP had a provision contained in Section 110 of the said Act, granting exemption from payment of property tax to educational institutions which were established for the purpose of education, recognized by the Government or local authority. However, on the enactment of the BBMP Act, 2020, such a provision was discontinued in the similar provision contained in Section 152 of the Act. Nevertheless, when many such institutions filed writ petitions before this Court and interim orders were passed

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by this Court, the State Government appears to have taken note of the same and amended the provisions contained in Section 152(1)(i)(b) of the BBMP Act, on 10.03.2023 substituting the provision re-introducing

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4 - NC: 2023:KHC:23577 WP No. 3931 of 2023

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similar provisions that were earlier available in the Karnataka Municipal Corporations Act, 1956, to exempt such educational institutions from payment of property tax. In view of the same, all such writ petitions which were pending consideration before this Court were disposed of including the case of the Management

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Association of Schools, Karnataka and Another Vs. the State of Karnataka and Others in W.P.No.12954/2001 dated 17.04.2023. Learned Counsel for the respondent-BBMP submits that similar orders may be passed in this writ petition taking note of the amendment brought to the BBMP Act.

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3. Consequently, this Court proceeds to pass the

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following order:

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i) Writ petition is allowed .

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ii) The impugned demand notice dated 02.01.2023 is hereby quashed and set aside.

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iii) In view of the amendment brought to Section 152(1)(i)(b) of BBMP Act, the

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5 - NC: 2023:KHC:23577 WP No. 3931 of 2023

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Circular which has been issued on 29.03.2021 is also quashed.

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Needless to observe that if the petitioner has deposited any amount before the BBMP or in terms of any interim orders that are passed by this Court, the same shall be adjusted to future tax payment due from the petitioner.

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Ordered accordingly.

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Sd/JUDGE

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KLY

Dr. B. R Ambedkar Educational v. State of Karnataka

Case brief

What is this about?

What did the court decide?

Dr. B. R Ambedkar Educational v. State of Karnataka

Case brief

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What did the court decide?

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