The addition of a nurses hostel to a charitable hospital is a charitable purpose exempt from general tax under Section 115(4)(a) of the Delhi Municipal Corporation Act, 1957.

( 1 ) THIS petition by the New Delhi Holy Family Hospital Society, New Delhi, has been filed for quashing the order of respondent No. 2, the Deputy ASsessor and Collector, Municipal Corporation of Delhi dated 20th September, 1971. passed under Section 126 of the Delhi Municipal Corporation Act, (hereinafter called the Act) by which be has eboanced the taxable value of the property from 81. 600. 00 to 2,81,910 00 for the year 1970-71.

( 2 ) THE petitioner society Is registered under the Societies Registration Act, 1890. The objects of the society amongst others are :-

(A) to perform works of charity by caring for the sick and disabled without distinction of caste, religion or race : (b) to establish, conduct and maintain all types of Medical Institutions for the care of the sick ; (c) to educate and train medical students. Nurses and midwives and to conduct courses for the same 7 (d) to train pharmacists and all types of medical personnel ; (e) to conduct medical research.

( 3 ) THE petitioner society erected and maintains a hospitall kno vn as Holy Family Hosipital within the Municipal Limits of the Delhi Mun cipal Corporation, respondent No 1.

( 4 ) SECTION ll4 (l) (d)of the Act provides for the levy of property tax on lands and buildings a general tax of not less than ten and not more than 20% of the ra eable value of lards and buildings within the urban areas ; Sub Section (4) of Section 1 15 of the Act lays down that the general tax shall be levied in respect of all lands and buildings in Delhi except:

(A) lands and buildings or portions of lands and buildings exclusively occupied and used for public worship or by a society or body for a charitable purpose ; provided that such society or body is supported wholly or in part by voluntary contributions, applies its profits, if any or other income in promoting its objects and does not pay any dividend or bonus to its members. Explanation to sub-section (4) of Section 115 defines charitable purpose to include relief of the poor, education and medical relie. Sub-section (5) of Section 115 provides that lands and buildings or portions thereof shall not be deemed to be exclusively occupied and used for public worship or fora charitable purpose within the meaning of clause (a) of sub lection (4) if any trade or business is carried on in such lands and buildings or portions thereof if in respect of such lands and buildings or portions thereof any rent is derived. Subsection (6) provides that where any portion of any land or building is exempt from the general tax by reason of its being exclusively occupied and used for public worship or for a charitable purppose such portion shall be deemed to be a separate property for the purpose of municipal taxation, The petitioner society derives its income from voluntary con" tribution and does not pay any dividend or bonus to its members nor does it declare any profit. In July, 1957 the erstwhile South Delhi Committee assessed the hospital property at an annual retea ble value of Rs81,000. 00andfull amount of house tax was realised. The petitioner however later on represented for exemption from the general tax in respect of the hospital building The Municipal Corporation taking into account the portion of the hospital for which service charges were recovered calculated the non-exempted portion at a rateable value of Rs. 21,600. 00 and the remaining building at Rs. 59,400. 00 per annum was treated as exempted from general tax. Thus from the year 1st April. 1959 onwards the petitioner s property was split into two portion (a) non-exempted Rs. 21. 600. 00 and (b) exempted Rs. 59,400. In 1970. pititioner society put up a Nurses Hostel building adjoining to the main hospital building. This builds ing is staled to have,been built under a grant from charitable organisation of West Germany. The said hostel building ts used for running a training school for nurses under the Government of lndia scheme for the integration of Public Healt