WRIT PETITION NO. 19336 OF 2023 (LB-RES)

C/W

WRIT PETITION NO. 14400 OF 2022 (LB-TAX)

Digitally signed by SHARADAVANI B

Location: HIGH COURT OF KARNATAKA

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE DATED 04.08.2023 BEARING NO.GRA.PAN.MU.AA.NO.2023-24/23 PRODUCED AT ANNEXURE-C, PAGE NO.40 55 AND ETC.,

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN THE NATURE OF CERTIORARI AND / OR SUCH OR OTHER WRIT ORDER OR DIRECTION AGAINST THE RESPONDENTS TO QUASH THE NOTICE BEARING NO.GRAM PANCHAYAT/MASKAL. GRAM PANCHAYAT /2022-23 DATED 20.06.2022 ISSUED BY PANCHAYAT DEVELOPMENT OFFICER AND PRODUCED AT ANNEXURE-C AT PAGE NOS.60 AND ETC.,

THESE PETITIONS, COMING ON FOR ORDERS THROUGH VIDEO CONFERENCING / PHYSICAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE M.I.ARUN

ORAL ORDER

1. The petitioners in both the writ petitions are educational institutions situated within the territorial jurisdiction of different Grama Panchayats and are granted exemption under Section 80G of the Income Tax Act, 1961. The petitioners have been assessed to property tax in respect of the building in which they are running their respective educational institutions and the same is imposed by the jurisdictional Panchayat. Aggrieved by the same, the present writ petitions are filed.

2. The case of the petitioners is that the jurisdictional Grama Panchayats should not be imposing property tax on the petitioners in the light of they being considered as a charitable institution and being granted exemption under Section 80G of the Income Tax Act, 1961.

3. Per contra, the learned counsel for the respondents submits that the petitioners cannot be granted any exemption just because they are charitable institutions. However, both the learned counsel for the petitioners as well as the learned counsel for the respondents jointly submit that the decisions of the respective Grama Panchayats, which have been impugned in the instant writ petitions, have been passed based upon the law which existed previously at the time of filing of the writ petitions and presently, the law has changed. They jointly submit, if the petitioners are relegated to the jurisdictional Panchayat Development Officer and if the petitioners are permitted to make a representations, the jurisdictional Panchayat Development Officer will consider the case of the petitioners in accordance with law and thereafter pass appropriate orders.

4. In view of the submissions made by learned counsel for the petitioners as well as learned counsel for the respondents, the following order is passed:

ORDER

i. The Writ Petitions are hereby disposed of.

ii. In Writ Petition No.19336/2023, the impugned order dated 04.08.2023 passed by respondent No.4 vide Annexure-C and the impugned order dated 11.08.2023 passed by respondent No.4 vide Annexure-D to the writ petition are hereby set aside.

iii. In Writ Petition No.14400/2022, the impugned order dated 20.06.2022 passed by respondent No.2 vide Annexure-C, the impugned order dated 04.07.2022 passed by respondent No.2 vide Annexure-D, the impugned order dated 12.07.2022 passed by respondent No.2 vide Annexure-E and the impugned order dated 20.06.2022 passed by respondent No.3 vide Annexure-F to the writ petition are hereby set aside.

iv. The petitioners shall submit detailed representations to the jurisdictional Panchayat Development Officer on or before 17.03.2026, explaining why they should not be subjected to payment of property tax.

v. The representations submitted by the petitioners shall be considered by the Panchayat Development Officer in accordance with the law and appropriate orders shall be passed with regard to the tax, which the petitioners are liable to pay or not and if they are liable to pay the tax, from which year t