- 1 - HC-KAR NC: 2025:KHC-D:8529 WP No. 102455 of 2025 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 9TH DAY OF JULY 2025 BEFORE THE HON'BLE MR. JUSTICE PRADEEP SINGH YERUR WRIT PETITION NO. 102455 OF 2025 (LB-TAX) BETWEEN: 1. K.L.E. SOCIETY’S S.S.K. COMP. P.U. COLLEGE, ANKALI, TALUK: CHIKKODI, DISTRICT: BELAGAVI, BY ITS PRINCIPAL SHRI. SMT. JYOTI KORE, AGE: MAJOR, OCC: SERVICE, R/O. ANKALI, TALUK: CHIKKODI, DISTRICT: BELAGAVI. 2. THE KARNATAKA LINGAYAT EDUCATION SOCIETY, BELGAUM, KLE SOCIETY, COLLEGE ROAD, REPRESENTED BY ITS SECRETARY, DISTRICT: BELAGAVI. SRI. B.G. DESAI, AGE: 63 YEARS, OCC: SECRETARY, R/O. BELAGAVI-590001. …PETITIONERS (BY SRI. M.B. HIREMATH, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, DEPARTMENT OF URBAN DEVELOPMENT, BY ITS PRINCIPAL SECRETARY, VIDHANA SOUDHA, DR. AMBEDKAR VEEDI, BENGALURU-01. 2. THE GRAM PANCHAYAT, ANKALI, TQ: CHIKODI-590002, DIST: BELAGAVI GRAM PANCHAYAT, BY PANCHAYAT DEVELOPMENT OFFICER. …RESPONDENTS (BY SRI. S.V. MAGADUM, AGA FOR R1; SRI. SHIVARAJ HIRAMATH, ADVOCATE FOR R2) VIJAYALAKSHMI M KANKUPPI Location: HIGH COURT OF KARNATAKA DHARWAD BENCH - 2 - HC-KAR NC: 2025:KHC-D:8529 WP No. 102455 of 2025 THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN THE NATURE OF MANDAMUS DIRECTING THE RESPONDENT NO.2 TO REFUND THE TAX COLLECTED BY THE PETITIONER TILL DATE AND ETC. THIS PETITION COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE PRADEEP SINGH YERUR) 1. The petitioner-K.L.E. Society, Belagavi established in the field of education and is running more than 310 educational institutions not only in the State of Karnataka and country but in overseas locations also. Petitioner No.1 is established by petitioner No.2 society after taking necessary approval. 2. This being the state of affairs, respondent No.2 issued notice to the petitioners-Education Institution, directing to pay property tax in respect of the building used for the educational institution. 3. It is the vehement contention of learned counsel that the Educational Institutions are exempted from paying property tax in accordance to the Statute and - 3 - HC-KAR NC: 2025:KHC-D:8529 WP No. 102455 of 2025 in a similar matter of identical nature, this Court held that property tax falling under Section 110(1)(i) of the Karnataka Municipal Corporations Act, 1976, would not be applicable to the Educational Institutions. Under the circumstances, petitioners contend that the issuance of notice, directing the petitioners to pay the property tax as sought for by respondent No.2, is not sustainable, as there is an exemption to the petitioner-Educational Institution for payment of property tax towards the Educational Institution and the Building. On these grounds, learned counsel seeks to allow the petition and quash the impugned order passed by respondent No.2 and for a direction to respondent No.2 to refund the tax so collected by the petitioners. 4. Learned counsel for the respondents does not dispute the provisions of the Karnataka Municipal Corporations Act and contends that if there is actually an educational building and institution existing on the said land, they would be entitled for the exemption as provided - 4 - HC-KAR NC: 2025:KHC-D:8529 WP No. 102455 of 2025 under the Act and not for building/property other than the educational institution. 5. It is relevant to extract Section 110(1)(i) of the Karnataka Municipal Corporations Act, 1976, which reads as under: “110. General exemptions.- (1) The following buildings and lands shall be exempted from the property tax:- (i) building or lands exclusively used for,- (a) students hostels which are not established or conducted for profit; (b) educational purposes by recognised educational institutions; (c) the offices of Labour Associations registered under the Trade Union Act, 1926 and belonging to such Association” 6. On careful perusal of the provisions hereinabove stated, it is apparently clear and there is no ambiguity with regard to the general exemption granted to Educational Institutions with regard to payment of property tax. There is sufficient force in the submission - 5 - HC-KAR NC: 2025:KHC-D:8529 WP No. 102455 of 2025 made by learned counsel for the petitioners that once the property is an Educational Institution, the building therein is exempted from payment of property tax as per Section 110(1)(i) of the Act and in view of the judgment of the Co- ordinate Bench of this Court in W.P.No.101205/2024, the petitioners herein also would deserve similar order on the ground of parity. Under the circumstances, I pass the following: ORDER (i) Petition is allowed. (ii) The impugned notice dated 30.12.2024 passed by the 2nd respondent demanding tax from the petitioner in respect of education institution is hereby quashed. (iii) Writ of mandamus is issued directing respondent No.2 to pass suitable order exempting the payment of tax to the education institution run by the petitioner. - 6 - HC-KAR NC: 2025:KHC-D:8529 WP No. 102455 of 2025 (iv) The respondent is at liberty to impose tax on the other properties which does not fall within the education institution as contemplated under Section 2 and 6 of the Karnataka Gram Swaraj and Panchayat Raj Act, 1993. (v) Petitioners shall furnish all necessary documents to the 2nd respondent seeking exemption for payment of tax to the education institution. Sd/- (PRADEEP SINGH YERUR) JUDGE CKK List No.: 1 Sl No.: 95