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TMI Blog1994 (5) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... activities. The extent of the premises required to run the administrative office would depend upon the nature and the size of its activities. Hence the premises required by an Organisation for its administrative office are an essential and an integral part of its charitable activities. Sometimes the administrative office of such organisations may be located where the charitable activity or activities are carried on and sometimes it is located away from such place depending upon the availability of the premises and convenience. So long as the premises in which the administrative office of the charitable Organisation is carried on are exclusively used and occupied by its office, the premises would be ones covered by the exemption provided und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able purpose are exempted from property tax. The relevant provisions of Section 115(4) are as follows: "(4) Save as otherwise provided in this Act, the general tax shall be levied in respect of all lands and buildings in Delhi except- (a)lands and buildings or portions of lands and buildings exclusively occupied and used for public worship or by a society or body for a charitable purpose : Provided that such society or body is supported wholly or in part by voluntary contributions, applies its profits, if any, or other income in promoting its objects and does not pay any dividend or bonus to its members. Explanation.- Charitable purpose includes relief of the poor, education and medical relief but does not include a purpose which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by his letter of 1-5-1984 as follows: "Dear Sirs, Please refer to your letter No. BCD/1240NG/ND/1401 dated 12-4-1984 addressed to Commissioner, Municipal Corporation of Delhi. 2.We should have liked to help your clients in the matter of grant of exemption if the law should have permitted. Unfortunately, that is not the case. We are, therefore, unable to grant exemption to the property of the Christian Children s Fund as the case is not covered under Section 115(4) of the DMC Act for grant of exemption. Yours faithfully, sd/- (M.P. Sharma) Assessor Collector" 4.The appellant, therefore, approached the High Court by filing a writ petition under Article 226 of the Constitution and the High Court by the impugned decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ildings or portions of lands and buildings should be exclusively occupied and used for public worship or by a society or body for a charitable purpose and that the society or body is supported wholly or in part by voluntary contributions and that it should apply its profits, if any, or other income in promoting its objectives and that it should not pay any dividend or bonus to its members. The explanation elucidates what the "charitable purpose" means. It defines charitable purpose to include relief to the poor, education and medical relief but does not include a purpose which relates exclusively to religious teaching. There is no dispute that the appellant-organisation is a charitable Organisation and that the purpose for which the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vided under the said provisions. To hold otherwise, viz., that it is only the premises where actual charitable activity is carried on alone is qualified for the exemption is to be irrational. The interpretation placed by the municipal authorities and also unfortunately by the High Court on the said provisions has, therefore, to be rejected. 6.The appeal is, therefore, allowed and the decision of the High Court is set aside. We direct the municipal authorities to consider the application of the appellant in the light of what is held above. It will be open for the municipal authorities to satisfy themselves that the premises in question are exclusively used and occupied for running the office for the charitable activities of the appellant-o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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