Pune: Jnana Prabodhini Navanagar Vidyalaya Emerges Victorious in Landmark Tax Dispute Against PCMC

Varad Bhatkhande

Pimpri Chinchwad, 1st February 2024: Jnana Prabodhini Navanagar Vidyalaya (JPNV) in Nigdi contested the Pimpri-Chinchwad Municipal Corporation’s (PCMC) decision to levy a general tax on educational institutions, leading to a 13-year legal battle. On February 29, 2024, Justice PG Tapadia of Pune District and Sessions Court issued a ruling directing PCMC to exempt JPNV from the general tax.

The PCMC Commissioner had initially mandated the imposition of a general tax on educational institutions within the city, treating them akin to property owners subject to taxation. Dissatisfied with this directive, JPNV took the matter to court in 2011, resulting in the protracted legal proceedings that concluded with the recent court order.

JPNV operates as an educational institution relying on student fees and contributions from the local community. Unfortunately, the organization has faced financial losses for the past decade. In advocating for the institution, Adv Pratibha Joshi Dalal and Adv Arjun Dalal asserted that the general tax imposed on JPNV should be waived due to its sustained financial challenges.

The court, upon reviewing the financial standing of JPNV and acknowledging its consecutive years of losses, deemed the tax notice issued by PCMC to the school as illegal. Consequently, the court ordered the cancellation of the general tax levied on JPNV. Adv MV Narhare represented PCMC in this matter.

PCMC Assistant Commissioner of Taxation and Tax Collection Department, Nilesh Deshmukh, stated that they would undertake an assessment of the situation. Following this, discussions would be held with PCMC’s Legal Department to determine the next course of action.