- 1 - NC: 2025:KHC:16878 WP No. 11901 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 11901 OF 2025 (LB-TAX) BETWEEN: M/S. INDUS BUSINESS ACADEMY, (UNDER ARIHANT EDUCATION AND RESEARCH FOUNDATION) SURVEY NO.164, LAKSHMIPURA THATGUNI POST, KANAKAPURA MAIN ROAD, BENGALURU - 560 062. (REPRESENTED BY ITS MANAGING TRUSTEE SHRI. MANISH JAIN, S/OLATE. B M JAIN, AGED ABOUT 53 YEARS) …PETITIONER (BY SRI. CHIDANANDA URS B.G, ADVOCATE) AND: 1. STATE OF KARNATAKA, REP. BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF URBAN DEVELOPMENT, M.S. BUILDING, DR. AMBEDKAR ROAD, BENGALURU - 560 001. 2. AGARA GRAM PANCHAYAT, AGARA VILLAGE, KENGERI HOBLI, BENGALURU SOUTH TALUK, BENGALURU - 560 082. …RESPONDENTS (BY SRI. BOPANNA BELLIAPPA, AGA FOR R1; SRI. B.J. SOMAYAJI, ADVOCATE FOR R2) Digitally signed by PRAKASH N Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:16878 WP No. 11901 of 2025 THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO (A) DIRECTION AS THIS HONBLE COURT MAY DEEM FIT TO SET ASIDE THE DECISION OF RESPONDENT NO.2 DATED 12.3.2025 WHICH IS HEREWITH ENCLOSED AS ANNEXURE-J AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S SUNIL DUTT YADAV ORAL ORDER 1. The petitioner has sought for issuance of writ of certiorari to set aside the decision of respondent No.2 at Annexure-J dated 12.03.2025. In terms of Annexure-J, the Panchayat Development Officer had considered the representation and held that the activities of the petitioner do not come within the exemption contemplated under Section 199(1) of the Gram Swaraj and Panchayat Raj Act, 1993. 2. The petitioner claims to be running an Educational Institution set up under the Public Charitable Trust. It is asserted that the said Trust has exemption under 80G of - 3 - NC: 2025:KHC:16878 WP No. 11901 of 2025 the Income Tax Act. Accordingly, it is submitted that the petitioner falls outside the ambit of taxability. 3. Learned counsel Sri B.J. Somayaji submits that the demand raised by the Panchayat is as regards the years 2022-23, 2023-24 and 2024-25. It is to be noticed that any demand by the Panchayat subsequent to 01.03.2022 would be in terms of the Karnataka Gram Swaraj and Panchayat Raj (Taxes, Rates and Fees of Grama Panchayats) Rules, 2021 (for short 'Rules, 2021'). In terms of said Rules the demand relating to property tax is to be unless exemption is claimed by the petitioner. 4. Learned counsel for the petitioner at the time of argument submits that the exemption being claimed by him would also fall within an ambit of Rules 16(c) of the Rules, 2021 or under any other provision of Rule 16. Noticing the contention, it is made clear that the petitioner has to make out his reply to the notice dated 24.11.2024 at Annexure-G. 5. The petitioner to substantiate his case regarding exemption under Rule 16 of the Rules, 2021. Such reply to - 4 - NC: 2025:KHC:16878 WP No. 11901 of 2025 be made out within a period of two weeks from the date of receipt of certified copy of the order. 6. After reply is made out, the respondent - Panchayath may afford an opportunity of hearing and proceed to either affirm the demand or pass an order regarding claim of exemption. The Panchayath is at liberty to follow the procedure under Rule 32 as may be necessary. 7. All contentions are kept open. Accordingly, petition is disposed off. 8. Needless to state, the respondent - Authorities cannot take any steps for recovery till orders are passed in light of the observations made above. Sd/- (S SUNIL DUTT YADAV) JUDGE DHA List No.: 1 Sl No.: 26 CT: BHK