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TMI Blog2022 (9) TMI 940X X X X Extracts X X X X X X X X Extracts X X X X ..... e hardship to them. The authority has erred in revisiting the aspect of undue hardship, as it has been taken none of the accepted by the State in the aforesaid Government Order. There is no other reason for the denial of exemption and the impugned order is thus set aside. Grant of exemption - HELD THAT:- G.O.Ms.No.1834, Revenue Department, dated 29.10.1983 was passed taking note of the suggestions of the Urban Land Tax Exemptions Committee constituted under G.O.Ms.No.461, Revenue Department, dated 17.03.1983, as it was felt that the criteria for grant of exemption should be revisited and reformulated - Since admittedly, R1 has lost sight of the applicable G.O. and has rejected the claim of exemption on an erroneous premise, while setti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 3.The management of the temple is as per the scheme that was formulated on 22.09.1969. The petitioner, in the belief that it is entitled to an exemption in terms of the provisions of the Tamil Nadu Urban Land Tax Act, 1966 (referred to hereinafter as Act ) from remittance of Urban Land Tax (in short ULT ) made a representation to the 1st respondent/the Commissioner of Land Reforms (R1/CLR) on 09.02.2005 seeking such exemption. 4.On 18.07.2018, proceedings came to be passed confirming the levy of the Urban Land Tax as against which W.P.No.25200 of 2018 was filed by the petitioner. The Writ Petition was disposed permitting the petitioner to re-submit a copy of the representation insofar as it had been the stand of the respondent tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt component of the total net expenditure, barely 0.013% of a sum of Rs.11,63,63,275/- which would not cause any undue hardship to the petitioner. 8.This finding has been inspired by the language under Section 27 of the Act, extracted below: 27. Power of Government to exempt or reduce urban land tax - (1) The Government, if satisfied that the payment of urban land tax in respect of any class of urban lands or by any class of persons will cause undue hardships, they may, subject to such rules as may be made in this behalf, by order- (a) exempt such lands or persons from the payment of the urban land tax, or (b) reduce the amount of such urban land tax whether prospectively or retrospectively. 9.Incidentally, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment, dated 29.10.1983, the latest in a line of Government Orders passed in regard to the grant of exemption. There are certain conditions set out under the aforesaid G.O. that ought to have been satisfied by an entity seeking exemption and, according to the respondent, the petitioner has not satisfied such conditions. I will presently advert to the aforesaid GO and the conditions stipulated thereunder. 13. Notably though, the rejection of the claim for exemption under the impugned order is not by invoking G.O.Ms.No.1834. In fact, there is no reference to this G.O. at all notwithstanding that the impugned order is dated 11.03.2019 long after the G.O. cited by the State. 14. The rejection is solely on the ground that no undue hardship ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c. In the Act, certain concessions have been provided statutorily for educational, religious, charitable and philan thropic institutions by way of exemption from the levy of tax in respect of certain lands of such institutions. However, representations have been received from such institutions to the effect that the Urban Land Tax levied on them, even after such concession, is casting a burden on the institutions and that with the income they derive from their building properties on the urban lands and otherwise they have not been above to meet the commitments connected with the objects of these institutions. Other institutions like Community Recreational Centres, Clubs, etc., which have no profit motive and commercial institutions like Cin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nised as Charitable and exemption granted under section 12A(a) of the Income Tax Act, 1961. The institution seeking exemption from the Tamil Nadu Urban Land Tax Act, should be a public trust and not a private trust. The cases of trusts seeking exemption would be subject to their satisfying the requirements of being a public Trust. After deducting all the inevitable charges like payment of local taxes, repairs and maintenance etc., the institutions should spend atleast 90% of the net income on their objectives and purposes. Such expenditure could be incurred in a block period of three years. The expenditure on establishment charges in respect of such institutions would be subject to a ceiling of 40% of its income while dete ..... X X X X Extracts X X X X X X X X Extracts X X X X
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