SRI KANYAKAPARAMESWARI ANNA SATRAM Vs. THE VIJAYAWADA MUNICIPALITY

JUDGEMENT

(1.) The only question that arises for decision in this second appeal is whether the 10 buildings referred to in the plaint are entitled to the exemption from property-tax under section 83 (1) (b) of the Madras District Municipalities Act (V of 1920) as amended. The plaintiff is Kanyakaparameswari Anna Satram Committee represented by its Secretary. The said Committee is a charitable association registered under Act XXI of 1860. The objects of the institution as can be gathered from the Memorandum of Association are in the main for giving shelter and food to the poor and to the pilgrims who visit Vijayawada for the purposes of bathing in the river Krishna and offering worship to Goddess Kanaka Durga. The Committee has established a choultry wherein visitors are permitted to remain for not more than 3 days with their families and are also supplied with cooking utensils and given every necessary help. Free food and alms are given to poor boys and assistance is rendered also for their education. The choultry is located in a building which bears the municipal door No. 4280. The 10 buildings that are involved in the suit are situate outside the choultry building. It is alleged in the plaint that these 10 buildings are rented and the income realised therefrom is used and applied for charitable purposes.

(2.) It would appear that the defendant-Municipality had been levying property-tax and the plaintiff-institution has been paying the same, in respect of 10 buildings for several years. It is further alleged in the plaint that those taxes were paid without the knowledge that they are entitled to exemption under the terms of section 83 (1) (b) of the Act. The suit, therefore, is laid for the purpose of obtaining declaration that the 10 houses referred to in the plaint are exempt from property-tax and for a permanent injunction restraining the defendant-Municipality from levying and collecting the taxes in pursuance of the demand of the Municipality dated 1st April, 1953. The Municipality contested the suit by pleading inter alia that the income from the 10 buildings is not used exclusively for the charitable purposes and that the suit chatram is not entitled to exemption under section 83 (1) (b) of the Madras District Municipalities Act.

(3.) The learned District Munsif held that the said buildings are distinct and separate from the choultry and that the income from the buildings was not shown to have been used exclusively for charitable purposes. He, therefore dismissed the,suit. In appeal filed by the plaintiff-committee, the learned Subordinate Judge while holding that the rental income from the 10 buildings was being applied for charitable purposes, agreed with the finding that the buildings are not entitled to the exemption because they are separate from the choultry. In that view he dismissed the appeal. Hence the second appeal.