Religious institutions are exempt from payment of property tax.

AR. LAKSHMANAN, J.:

1. Heard Mr.Subbiah learned counsel for the appellant and Mr.R.Balakrishnan learned counsel for the respondent.

2. The writ appeal is directed against the order of Y.Venkatachalam, J. dated 21.11.1995 in W.P.No. 10022 of 1985. The said order reads as follows:

ORDER

“This writ petition is filed by the writ petitioner under Art.226 of the Constitution of India to quash the order passed by the respondent.

(2) In support of the writ petition, the writ petitioner filed an affidavit and in the affidavit the writ petitioner narrated all the facts and circumstances of the case which forced him to file this writ petition.

(3) The other side did not file the counter.

(4) The arguments of both sides are heard.

(5) The point for consideration is whether there are valid grounds to allow the writ petition or not.

(6) I have perused the materials available on record. Having considered the entire materials available on record, I am of the clear opinion that it is just and proper to remand the matter to the respondent for fresh disposal according to law, after giving an opportunity to the Writ Petitioner to let in oral or documentary evidence.

(7) In the result, this writ petition is allowed and the order passed by the respondent is hereby set aside and the matter is remanded to the respondent for fresh disposal according to law, after giving an opportunity to the writ petitioner to let in evidence oral or documentary but in the circumstances without costs. 21.11.1995”

The above order of remand to the respondent for fresh disposal is under challenge in this writ appeal. We have perused the affidavit and other documents relied upon by both the parties. The premises bearing No.52, V.V.Koil Street, Perambur Barracks Road,Madras-7 admittedly belongs to the appellant mutt. It is a Religious Institution propagating the Hindu Philosophy with the temple attached to it both for public and private worship. In fact it has been declared so by the Government of Tamil Nadu under G.O.Ms.No.1447 dated 23.6.1975. It is also not in dispute that periodical lectures are also conducted on the subject of Hindu Philosophy in the said premises. It is also not in dispute that on account of the nature of the property as Mutt and temple, exclusively used for religious purpose the property in question was exempted from the Tamil Nadu Urban Land Ceiling Act and the Tamil Nadu Urban Land Tax Act. However, for the first time, ever since its foundation in or about 1921 by its founder His Holiness Sri Nyaya Chandra Vedanta Bhaskara, it was assessed for property tax. All of a sudden, the Corporation of Madras sent a notice demanding property tax for the year 1982. Inspite of the appellants plea for exemption under law, as it is a religious institution the demand was renewed by notice dated 12.6.1985 demanding tax for Rs.302 per half year for the years 1982 to September, 1985. As the demand is against law, the appellant filed a writ petition on the file of this Court to quash the said order of demand by issue of a writ of certiorari. The writ petition was filed in the year , 1985. No counter-affidavit was filed by the respondent Corporation, during the pendency of the writ petition from the year 1985 till its disposal by the learned Single Judge of this Court on 21.11.1995. However, our attention was drawn to various proceedings of the other authorities granting exemption to the property in question from payment of any tax. The proceedings of the Assistant Commissioner of Urban Land Tax North West Taluk (East) Madras-34 in D.Dis.No.252/69 dated 7.5.1971 was placed before us. The order was made on a petition dated 26.9.1966 from the Madathipathi of the appellant Madam, Madras. A report from the Special Deputy Tahsildar was called for and he submitted his report on 20.4.1971. The order reads thus:

“The Madathipathi Sri Veera Subbaiah Swamigal Madam, in the Petition first cited, have requested for exemption of R.S.No.1859/1, of Puraza-walkam m