Koshy, J.

Petitioner is the Director of St. James Hospital Trust which is registered as a charitable trust under the India Trust Act with register No.647/IV/88. Ext.P1 is the registered trust deed. The Tahsildar, Mukundapuram after verification issued Ext.P2 certificate testifying that the above Trust is a charitable and non-profit making organization working in the field of health on non-sectarian basis without consideration of religion, caste or creed. Ext.P3 balance sheet and income and expenditure account shows that it is not working in profit. In fact, it shows excess expenditure over income. The capital fund shows that the capital was issued by donation of Rs.83,34,455/- and part of running expenses were also met by donations or loan obtained from the benefactors. The statement of accounts will reveal that the hospital was constructed with voluntary contributions from public and income generated was utilized for treatment to the poor and for making further construction and other developmental activities and was not diverted for any other purpose. No dividend or income distribution was made. Nature of the functioning of the hospital, as can be seen from, the trust deed, is charitable. Income Tax authorities accepted it as a charitable institution and exempted the Trust from paying income-tax as can be seen from Ext.P15. However, the petitioner was assessed to property tax by the Municipality. During the relevant time, lands and buildings or portions of lands and buildings exclusively occupied and used for charitable purpose by a society or a body was exempted.

2. Section 101 (1) (d) of the Kerala Municipalities Act as it existed during the relevant time reads as follows:

“101. Exemption:- (1) The following buildings and lands shall be exempt from the property tax:-

XX XX XX XX

(d) 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 and applies its profits, if any, or other income in promoting its objects and does not pay any dividend or bonus to its members.” (emphasis added)

The accounts produced for various years would show that no dividends or bonus is paid to the members of the trust and the income is mainly generated by voluntary contributions apart from the income received while giving treatment and sale of medicines. But, the entire income received is used in promoting its objects. However, the Municipality has passed an order denying exemption to the petitioner. The above order was finally upheld by the Government by Ext.P18 order in revision. This is challenged before this Court. According to the Government as well as the Municipality, amounts are collected from the patients for treatment and that amount is not used for charitable purpose; but, it is used for developmental activities and, therefore, petitioner is not entitled to exemption. The learned Single Judge found that the total income from Pharmacy collection, I.P. collection, Lab collection, consultation fee, income from operation, x-ray collection, income from minor surgery, ECG collection etc. comes to Rs.16 lakhs. It is also stated that there is excess expenditure over income and it will not show that it was spent for the poor. One of the four objectives of the Trust (main object) is to provide general medical service to the public solely for philanthropic purposes irrespective of caste, creed or community. According to the learned Single Judge, since the amounts were collected and part of the same is used in the developmental activities, it is not a charitable institution. According to the appellant, the above conclusion is perverse and opposed to the decisions of this Court and Hon’ble Supreme Court on the undisputed facts of this case. The learned Single Judge also found that for the relevant year amount spent for purchase of medicine is more than Rs. E