IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE NINETEENTH DAY OF APRIL TWO THOUSAND AND TEN PRESENT THE HON'BLE MRS. JUSTICE T.MEENA KUMARI AND THE HON'BLE MR JUSTICE NOOTY RAMAMOHANA RAO WRIT PETITION NO : 8644 OF 2010 Between: Sree Chowdeswari Devi Thogata Veera Kshatriya Kalyanamantapam Abhivrudhi Sangam, Rep. By its Joint Secretary B. Adinarayana ..... PETITIONER AND The Government of Andhra Pradesh, Rep. By its Secretary, Department of Municipal Administration & Urban Development, Secretariat, Hyderabad and another .....RESPONDENTS The Court made the following : ORAL ORDER: (per THE HON’BLE MRS. JUSTICE T.MEENA KUMARI) Seeking a writ of mandamus to declare the action of the second respondent in issuing Special Notice dated 20.02.2008 and warrant notice dated 20.03.2010 demanding property tax from the petitioner when the choultries are exempted from payment of tax under Sec.88(b) of Municipalities Act, 1965 as illegal, arbitrary and contrary to the provisions of the Municipalities Act, the petitioner filed this writ petition. The petitioner is a society registered under Societies Registration Act with the aims and object to carry on activities of charitable nature and general public utility. The petitioner has constructed a choultry and obtained permission for exemption of payment of Income Tax under Sec. 12A of the Income Tax Act and in the year 2007, the Commissioner has renewed the exemption. While so, the society had purchase the land and started construction of Kalyanamantapam by raising donations and raising loans from banks. It also approached the municipality for help and its application was placed before the council by resolution dated 29.11.2004. The Society had been submitting it audited assessments to the Commissioner of Income Tax by the end of March. While so, the petitioner society was served with the special notice dated 20.02.2008 by the second respondent raising a demand of Rs.30,790/- for half period from 1.10.2008, to which the petitioner had submitted representation dated 15.03.2008. The second respondent through its proceedings Rc.No.94/09-A1 dated 28.01.2009 informed the petitioner that since it is receiving rents, no exemption from payment of tax can be granted. Even though the petitioner submitted representation dated 26.02.2009 along with the statements and expenditure to show that the amounts received are spent for charitable purposes, a warrant notice is issued demanding payment of Rs.1,98,908/- for the period 2007-08 to 2009-2010 along with interest of Rs.44,958/-. Hence, this writ petition. Learned counsel for the petitioner submits that the petitioner society is exempted from payment of income tax in terms of the renewed exemption granted by the Commissioner by proceeding dated 28.12.2007 inasmuch as it is carrying on charitable activities and bringing all these facts to the notice of the second respondent, the petitioner had submitted representations dated 15.3.2008 and 26.2.2009 seeking exemption from payment of the tax. She further submits that the petitioner Society would make fresh representation to the first respondent seeking exemption from payment of the tax. In the facts and circumstances of the case, suffice it to direct the second respondent to dispose of the representations dated 15.3.2008 and 26.2.2009 submitted by the petitioner within a period of three month from the date of receipt of a copy of this order. In view of the submission made by the learned counsel for the petitioner society, liberty is also granted to the petitioner Society to make appropriate representation to the first respondent seeking exemption from payment of tax. In the meanwhile, the respondents are directed not to take coercive steps for recovery of the disputed amounts. With these directions, the writ petition stands disposed of. No order as to costs. ____________________ Justice T.Meena Kumari __________________________ Justice Nooty Ramamohana Rao April 19, 2010 MAS