1986 (11) TMI 40

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..... onstitute occupation or user for charitable purpose within the meaning of section 202(1)(b) and the Race Course Club will not be entitled to claim exemption from levy of general tax. The valuation made by the Small Causes Court has been confirmed by the High Court. We see no reason to interfere with the valuation as made by the Small Causes Court and confirmed by the High Court. Accordingly, in so far as these two points are concerned, the decision rendered by the High Court must be confirmed. Appeals allowed in part. - - - - - Dated:- 11-11-1986 - Judge(s) : B. C. RAY., M. P. THAKAR JUDGMENT The judgment of the court was delivered by THAKAR J.--Believe it or not, the most incongruous arguments can sometimes find a suitor. W .....

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..... ceiving that some of the purposes for which the income was to be employed were charitable purposes concluded that the exemption under section 202(1)(b) was available. The test to apply is to seek an answer to the question : to what use is the property put or for what purpose is the property put ? And to ascertain whether such occupation or user is for a charitable purpose. In the present case, the occupation and user is to conduct horse races and to train horses for racing. Unless it can be posited that conducting of horse races is a charitable purpose, it cannot be concluded that the exemption envisioned by section 202(1)(b) is attracted. And even if one were to take the most charitable view as regards the meaning and content of th .....

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..... or user for any purpose would constitute a user for charitable purpose provided the income is used for a charitable purpose. Clutching at the tail of this reasoning, one would be induced to the conclusion that user of a building for running a common gaming house (or for any immoral or illegal purpose) would be user for a charitable purpose provided the income of the common gaming house is utilised for a charitable purpose. The argument deserves no further scrutiny and must be rejected outright. No further exercise need be undertaken in order to find out whether or not section 202(1)(b) is attracted in the facts of the present matter. The judgment of the High Court in so far as the High Court holds that section 202(1)(b) is attracted .....

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