Disposed

Smt. Mehra'S v. State of Karnataka

Karnataka HC17 Apr 2023WP/3953/2023

Case brief

AI extract

What is this about?

Petitioner challenged Section 152(1)(i)(b) of the BBMP Act and a circular denying private educational institutions property tax exemption. Court held that a State Government amendment in 2023 removed discrimination based on institutional ownership, rendering the claim obsolete, and consequently quashed the circular and demand notices.

What did the court decide?

Circular dated 29.03.2021 and consequential demand notices quashed; deposit directed to be adjusted to future tax payments.

Smt. Mehra'S Vs State of Karnataka — Property and Title | Karnataka HC (2023)

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WP No. 3953 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 17^TH DAY OF APRIL, 2023 BEFORE

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THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 3953 OF 2023 (LB-TAX)

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BETWEEN:

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SMT. MEHRA'S, EDUCATION SOCIETY, REPRESENTED BY ITS SECRETARY, DR. MARIA KAVITHA, AGED 47 YEARS, W/O MR. R SAMPATH RAJ, O/A NO. 05 & 08, MURUGESH MUDDALIAR ROAD, FRAZER TOWN, BANGALORE - 05.

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…PETITIONER

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(BY SRI. AKARSH KUMAR GOWDA, ADVOCATE)

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AND:

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Digitally signed by REKHA ANKAIAH Location: High Court of Karnataka

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STATE OF KARNATAKA, REPRESENTED BY ITS CHIEF SECRETARY, VIDHANA SOUDHA, BENGALURU - 01. 2. COMMISSIONER, BBMP, MAHADEVAPURA ZONE, WHITE FIELD MAIN ROAD, BANGALORE - 48. 3. ASSISTANT REVENUE OFFICER, BBMP, HORAMAVU SUB-DIVISION, BANGALORE - 560 113. …RESPONDENTS (BY SRI. NITYANANDA K.R, AGA FOR R1; SRI. PAWAN KUMAR, ADVOCATE FOR R2 AND R3)

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WP No. 3953 of 2023

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THIS WP IS FILED UNDER ARTICLES 226 AND 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-B ISSUED BY R-3 NOTIFYING THE PETITIONER SOCIETY THAT THE PETITIONERS ARE NOT ENTITLED FOR TAX EXEMPTION AS PER SECTION 152 OF THE BBMP ACT AND ETC.,

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THIS WP, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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In the above matter, a declaration has been sought for that Section 152(1)(i)(b) of the Bruhath Bengaluru Mahanaga Palike Act, 2020 (for short the 'BBMP Act') insofar as it excludes education purposes by private education institutions, is violative of Article 14 of the Constitution of India and is discriminatory. It is in that background that a circular which has been issued under Section 152(1)(i)(b) of the BBMP Act by the BBMP notifying that private institutions do not have the benefit of exemption from payment of property tax has been challenged. Consequently, the demand notice issued by the BBMP calling upon the petitioner to make payment of property tax is also challenged.

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During the pendency of the above matter, the State Government has amended Section 152(1)(i)(b) of the

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WP No. 3953 of 2023

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BBMP Act on 10.03.2023 substituting Section 152(1)(i)(b) of the BBMP Act with the following: "the education institutions established for the purpose of education, recognized by the government or local authority" .

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In view of the said amendment, the discrimination alleged by the petitioner against private education institutions vis-a-vis government education institutions does not survive inasmuch as all education institutions which have been recognized by the government or local authority would be entitled for exemption. Thus, a declaration which has been sought for in the above matter in respect of 152(1)(i)(b) of the BBMP Act has been violative of Article 14 of the Constitution of India does not survive for consideration.

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In view of the amendment, the circular which has been issued on 29.03.2021 notifying that private institutions do not have the benefit of exemption would be required to be quashed on account of Section 152(1)(i)(b) of BBMP Act has been amended by clarifying that any

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WP No. 3953 of 2023

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institution which is recognized by the government or local authority would be entitled for exemption.

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The consequential prayer seeking for quashing the demand notices which have been issued by the BBMP to the petitioner in furtherance of the circular dated 29.03.2021 would also have to be quashed in view of the circular having been quashed.

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It is made clear that if the petitioner has deposited any amount in view of any interim orders passed by this Court, the same is directed to be adjusted to future tax payments due by the petitioner on the said properties.

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With the above observations, the petition is disposed of .

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Sd/JUDGE

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GJM

Smt. Mehra'S v. State of Karnataka

Case brief

What is this about?

What did the court decide?

Smt. Mehra'S v. State of Karnataka

Case brief

What is this about?

What did the court decide?

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