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TMI Blog1973 (12) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner society erected and maintains a hospitall kno vn as Holy Family Hosipital within the Municipal Limits of the Delhi Mun cipal Corporation, respondent No 1. (4) Section 114(l)(d) of the Act provides for the levy of property tax on lands and buildings a general tax of not less than ten and not more than 20% of the ra'eable value of lards and buildings within the urban areas ; Sub Section (4) of Section 115 of the Act lays down that 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 to sub-section (4) of Section 115 defines 'charitable purpose' to include relief of the poor, education and medical relie . Sub-section (5) of Section 115 provides that lands and buildings or portions thereof shall not be deemed to be exclusively occupied and use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 97u-7l because of the addition of Nurses Hastel building. (6) The petitioner society made r,eoresontation against enhancement 'to respondent No. 2, but inspile of it the rateable value has been increased to ₹ 1,81,910 00. la the impugned order (Annexure E) no reason is given for the increase. In the counter-affidavit of respondent No 2, it has been explained that the petitioner society indicated that a sum of ₹ 13 lakhs was spent on the residential blocks on the ground floor, 1st floor and 11nd floor which are used for the residence of nurses, student nurses and as such has been finalised ai a rateable value of R, l00910/ P.M. as non-exempted and after adding it to the value already non-exempted (ie-21,600) a total of Rs. l22,510PA. aS nonex.. empted from general tax with effect from 1st April, 1970, has been arrivedt at,the previous rateable value of ₹ 59.000.00 p. as exempted has been maintained in respect of hospital building only. (7) The petitioner feeling aggrived against Vie increase in the rateable. value. in the none-exempred has filed this writ petition. The cop ention is that the addition of the nurses hostel is also a charitable purpose and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l tax. (12) The position tegarding the use and occupation of this addition namely student hostel seems io be as follows :- (A)a portion is occupied for giving training to the student nurses (b) another portion is occupied for the residence of student nurses. (c) another portion is occupied by the regular nurses employed in the hospital (d) another portion is occupied by common room including hostel etc office etc. During the course of the argument it was stated at the bar by the counsel for the petitioner that the grant given to the hospital for the public health scheme was only a part of the expenses which was here, sary far maintaining this institution and that the society was spending manifold time more amount to run Nurses hostel, and actually was paying stipend from its own resources. Apparently the portion mentioned a' (a) would be entitled to relief frona payment of general tax. Regarding portion at (b) i.e. one occupied as residence by student nurses it is claimed that fee is taken from the student nurses; another that one paid seipend by the hospital. It was however admitted that a small f-e of ₹ 10.00 p.m. is being charged as lodging expenses from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n,cannot be exempted. Mr. Khera however urged that no provisions of the hostel accomodation to nurses is in lieu of the obligation on the society to provide accommodation and it cannot be said that any rent is being derived as there is no tenancy in the occupation of nurses Now Sub section 5 of Section 115 says that portion shall not be deemed to.be exclusively occupied and used for a charitable purpose if in respect of such land and building or portions thereof any rent is derived. It necessarily means that before it can be held that rent is being derived from a portion, the occupant must have an interest of tepancy in the portion, occupied by him. Section 105 of the Transfer of Properly Act says a lease of iminoveible property is a transfer of a right to enjoy such property, made for a certain time, express or implied or in perpetuity, in conaideration of a price paid or promised, or any ether thing of value, to be rendered periodically or on specified occasions to the .transferor by the transferee, who accepts the transfer on such terms. The money, share, service or other thing to be so rendered is called the rent. (Emphasis mine). Whether the relationship between the nurses and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stain it. Unfortuoately no indication is given in the impugned order about it. Even in the counter affidavit also, it is not stated that any portion has been given exemption. It appears that respondent No. 2 has proceeded on the basis that the whole of the building has to be assessed for rateable value lt is manifest that order of respondent No. 2 increasing the rateable value haa been passed without applying its mind to take essential aspecis mentioned above and is thus not in compliance with the relevant statutory prov siors and therefore suffers from a patent error of law, and is liable to be corrected in these proceedings (17) Mr Bhatia counsel for the respondent however objects that the petitioner is not entitled to relief in these proceedings because he has alternative remedy by way of appeal available under section 169 which gives a right of an appeal against the levy or assessment of any tax under 'the Act to the Disirict Judge. It is also pointed outthat sub-section 2 of Section 169 further provides that if before the bearing of appeal any question of law arises, the District Judge may draw up a statement of the facts of the case and the question so arising and refer t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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