Marthoma Syrian Church Vs State of Kerala (Kerala High Court)
Kerala High Court held that exemption from building tax u/s. 3(1)(b) of the Kerala Building Tax Act, 1975 granted as building is used for providing free accommodation to aged and disabled person rendering their services to the charitable/ religious institutions.
Facts- The petitioner had constructed a building, mainly intended for using it as a housing complex for retired and aged clergymen and their families. The same was constructed with the charitable and religious aim of conducting worship and providing shelter and care for retired, aged and indigent clergymen and families of the deceased clergymen, who have no other means of livelihood and protection in their old age. The applications submitted by the petitioner, seeking exemption.
This writ petition is submitted by the petitioner, challenging the order passed by the Government by which the exemption sought by the petitioner from payment of building tax u/s. 3(1)(b) of the Kerala Building Tax Act, 1975 was rejected.
Conclusion- In a case in which, the building is utilized for free accommodation of the aged and disabled persons who rendered their services to establishments exclusively engaged in charitable/religious activities and managed by the institution owning the building in question, a different yardstick needs to be applied. In other words, if the accommodation is provided without collecting charges, for the persons who rendered their services to the charitable/religious institutions managed by the owner of the building, it has to be treated as a charitable purpose within the meaning of section 3(1) (b) of the Act. The claim of the petitioner in this regard has to be verified by the authority concerned, for determining the eligibility of the petitioner for exemption. However, in order, the application of the petitioner was rejected only on the ground that, no religious activity was being carried out therein. Therefore, the matter require reconsideration.
