9911796707
TMI Blog2010 (7) TMI 1199X X X X Extracts X X X X X X X X Extracts X X X X ..... 8.02.1979, for the purpose of activities of the trust and the Income Tax Department has granted exemption under Section 80G of the Income Tax Act, in favour of the petitioner's trust. In the land purchased by the petitioner's trust, initially it established an Outpatient Medical Center during 1982, and subsequently with the aid of the donation received, put up additional buildings and as on date, it is fully fledged hospital. According to the petitioner, the buildings belongs to the trust, and being used for hospital and dispensaries, are exempted from the payment of property tax in terms of Section 123(e) of the Coimbatore City Municipal Corporation Act. The petitioner had challenged the notice issued by the respondent Corporation, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the extent possible. Thereafter, the respondent again by communication, dated 28.02.2002, called for various others particulars to which the petitioner submitted a detailed reply on 19.08.2002, stating that the petitioner's trust is a Charitable Institution registered under Section 12A of the Income Tax Act and also exempted under Section 80G of the Act. In spite of such reply, the respondent by order dated 09.12.2002, rejected the request for exemption. Aggrieved by such order, the petitioner is before this Court by way of the present writ petition. 3. The learned Counsel for the petitioner would contend that the respondent corporation has overstepped its authority and the exemption contemplated is a statutory exemption in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the rejection of the claim for exemption is fully justified. It is further contended that the exemption granted under Section 80G of the Income Tax Act, may not by itself prove the charitable nature of the petitioner's trust and in spite of repeated opportunity, the petitioner failed to produce the relevant documents. On these grounds, the learned standing counsel prayed for dismissal of the writ petition. 5. The learned Counsel for the petitioner relied on the reply affidavit filed by the petitioner to the counter affidavit and submitted that the name of the petitioner itself discloses that it has been created for the laudable object of treating the poor children and the down trodden and that the exemption granted und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the petitioner had sent a reply on 09.08.2002, stating that the payment made by the corporation is vague and indefinite and it is not necessary for the corporation to demand such details. Such stand taken by the petitioner may not be appropriate since the respondent corporation has to arrive at a decision based on the material placed before it. If the material called for, are not available with petitioner, it would be the another matter. As already observed the question of exemption has to be decided on the facts available. 8. In the instant case, apart from arriving at decision based on records, the respondent is also required to conduct the inspection of the premises, since what claim is exemption from levy of property tax on buil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld as follows: In this case, the amounts paid by the patients, who use the hospital as well as the range of services provided by it, cannot be regarded as 'rent' paid by them in the narrower sense in which it is intended under the provisions referred to earlier. 9. On perusal of the entire material available on record and after going through the counter affidavit and the reply affidavit, in my view, this is a fit case, where the entire issue has to be reconsidered by the respondent and the petitioner is also bound to produce all documents in support of their claim as well as such those documents called for by the respondent. Further, if such records are not available to the petitioner or if they claim privilege to such docume ..... X X X X Extracts X X X X X X X X Extracts X X X X
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