Madhya Pradesh Jesuits Vs State of Chhattisgarh (Chhattisgarh High Court)
The petitioner, Madhya Pradesh Jesuits, a charitable trust bearing Registration No. 77-1959-60, established Loyola Higher Secondary School at Rajiv Vihar, Seepat Road, Bilaspur in 2005. It challenged demand notices dated 06/08/2021 and 02/09/2021 issued by the respondent Municipal Corporation for property tax of approximately Rs. 19.75 lakh for financial year 2020-21. The petitioner claimed exemption under Section 136(c) and (e) of the Chhattisgarh Municipal Corporation Act, 1961, relying upon a certificate stated to have been issued under Section 12(A) of the Income Tax Act, 1961 on 10.7.1974.
Learned counsel for the petitioner submitted that the institution was a charitable and minority institution registered under Section 12(A) of the Income Tax Act and that the certificate entitled it to exemption from property tax. The respondents, however, submitted that the Section 12(A) registration certificate was issued in favour of “The President, Madhya Pradesh Jesuits, Kunkuri P.O., Raigarh Distt.” and not in favour of the petitioner-institution situated at Rajiv Vihar, Seepat Road, Bilaspur.
The Court considered Section 136(c) of the Chhattisgarh Municipal Corporation Act, 1961, which provides that property tax shall not be leviable in respect of specified educational institutions, including educational institutions registered under Section 12A of the Income Tax Act, while other educational institutions may be given a rebate of up to fifty percent of the property tax as assessed by the Corporation in accordance with prescribed norms.
