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Issues Involved:
1. Whether the appellant is entitled to exemption from property tax under Section 115(4) of the DMC Act. 2. Whether the grants received by the appellant from the Government of India can be considered voluntary contributions. 3. Whether the appellant's activities qualify as charitable purposes under the DMC Act. 4. Whether the appellant should have approached the appellate authority before invoking the writ jurisdiction of the High Court. Issue-wise Detailed Analysis: 1. Exemption from Property Tax under Section 115(4) of the DMC Act: The primary question was whether the appellant, a society engaged in research and established by the Government of India, qualifies for exemption from property tax under Section 115(4) of the DMC Act. The provision exempts properties used for public worship or by a society for charitable purposes, provided the society is supported by voluntary contributions, applies its income to promote its objectives, and does not pay dividends or bonuses to its members. The court analyzed whether the appellant met these criteria. 2. Nature of Grants as Voluntary Contributions: The appellant claimed that the grants received from the Government of India were voluntary contributions. The court examined the memorandum of association and the nature of the grants. It was noted that the grants were not regulated by statutory rules and could be terminated by the government at any time, indicating their voluntary nature. The court referenced the Supreme Court's decision in Commissioner of Income-tax, Bombay City-IV v. Gem & Jewellery Export Promotion Council, which held that grants-in-aid are discretionary and not claimable as a matter of right, thus supporting the appellant's position. 3. Charitable Purposes: The court examined the appellant's objectives, which included research in immunology, vaccine development, and related areas, as detailed in its memorandum of association. These activities were deemed charitable, focusing on medical relief and education. The court found that the appellant's income was applied towards these objectives and no portion was paid as dividends or bonuses to its members. The court also noted that the appellant's research projects, funded by various international organizations, were for the welfare of mankind, further supporting the charitable nature of its activities. 4. Alternative Remedy of Appeal: The respondent argued that the appellant should have approached the appellate authority before invoking the writ jurisdiction of the High Court. The court acknowledged that normally, the existence of an alternative remedy would preclude writ jurisdiction. However, given the long pendency of the appeals and the comprehensive nature of the issues, the court decided to exercise its discretion and address the merits of the case directly. Conclusion: The court concluded that the appellant satisfied the requirements for exemption under Section 115(4) of the DMC Act. The appellant's activities were charitable, supported by voluntary contributions, and no profits were distributed to its members. The court directed the assessing authority to grant the exemption and issue revised bills accordingly. The appeals were allowed, and the orders of the learned Single Judges were set aside.
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