MUNICIPAL CORPORATION OF DELHI SAFDARJUNG ENCLAVE EDUCATION SOCIETY Vs. CHILDREN BOOK TRUST:MUNICIPAL CORPORATION OF DELHI

JUDGEMENT

(1.) THE Judgment of the court was delivered by -

(2.) . Both these appeals can be dealt with under common judgment since the scope of S. 115(4 Delhi Municipal Corporation Act, 1957 (hereinafter referred to as 'the Act') alone arises. However, it is necessary to state the facts of each case separately.

(3.) . In the year 1970 the appellant-corporation served a notice on the respondent proposing that the rateable value of the building should be revised. On 1/02/1973 the Deputy Assessor and Collector of the appellant-corporation passed an order to the effect that the rateable value of the property be revised and enhanced to Rs. 16,29,750.00. The Deputy Assessor and Collector held that the respondent had not proved its charitable character. Further, the user of the property did not go to prove that the property was used for charitable purpose and the same cannot be exempt from tax. Aggrieved by this order dated February I, 1973, a writ petition under Articles 226 and 227 of the Constitution was Filed before the High court of Delhi in C.W. No. 318 of 1974. The claim of the respondent, who figured as the petitioner therein, was that the withdrawal of exemption from the payment of General Tax previously enjoyed on portions of the property was wrong. It was contended that the case of the Trust was covered by S. 115(4 proviso of the Act; proviso exempts buildings from the payment of General Tax if exclusively occupied and used by a society for charitable purpose. The learned Single Judge (Rajinder Sachar, J.) allowed the writ petition. He held that the Trust would be entitled to claim total exemption for payment of tax undersection 115(4 of the Act for all the portions occupied by it except which is occupied by the press namely the basement area of 11217 sq. ft. for which a monthly rental value has been assessed at Rs. 14,021.25 and an area of 2000 sq. ft. on the ground floor rear portion for which the monthly rental value has been fixed at Rs. 3,462.50. Even from this rental value the Trust was entitled to claim exemption in the proportion of the income accruing to it from the publication of children books etc. In the result, the impugned order of the Deputy Assessor and Collector was quashed to the above extent and the matter was remitted to him to dispose of in accordance with law and in the light of the observations made a in the judgment.