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2022 Supreme(Mad) 3146
IN THE HIGH COURT OF JUDICATURE AT MADRAS
ANITA SUMANTH, J.
Sacred Heart Convent Anglo Indian Higher Secondary School, rep. by its Correspondent, Villupuram - Appellant
Versus
The Secretary, Department of Municipal Administration and Water Supply, Chennai & Others - Respondent
W.P. No. 4095 of 2019 & WMP. Nos. 4584 & 4587 of 2019
Decided On : 11-07-2022
For the Petitioner:A. Arul Mary, Advocate. For the Respondents:R1 & R4, C. Sangamithirai, Special Government Pleader, R3, V. Elango, Advocate, R2, No Appearance.
Wholly aided schools are entitled to exemption from property tax under the Tamil Nadu District Municipalities Act, 1920, based on their aided status and grants received from the State.
Headnote:
Property Tax Exemption - Aided School - The court found that the petitioner, a wholly aided school, was entitled to exemption from property tax under the Tamil Nadu District Municipalities Act, 1920. The court set aside the impugned assessment order and demand based on the school's aided status.
Fact of the Case:
The petitioner, a wholly aided school, claimed exemption from property tax under the Tamil Nadu District Municipalities Act, 1920. The court considered documents proving the school's aided status and the grant received from the State.
Finding of the Court:
The court found that the petitioner was indeed a wholly aided school and entitled to exemption from property tax. The impugned assessment order and demand were set aside, and the writ petition was allowed with no costs.
Issues: The main issue was whether the school was wholly aided and thus entitled to exemption from property tax under the Act.
Ratio Decidendi: The court relied on the permanent recognition of the school, the 12A certificate issued under the Income Tax Act, and the grant received from the State to establish the school's aided status and entitlement to property tax exemption.
Final Decision: The impugned assessment order and demand were set aside, and the writ petition was allowed with no costs.
JUDGMENT
(Prayer: Writ Petition filed under Article 226 of the Constitution of India, to issue Writs of Certiorari, calling for the records pertaining to the impugned assessment order dated 14.09.2018 in Assessment Nos.044/032/00566/ to 044/032/00568 and the demand made therein, on the file of the 3rd respondent, insofar as it imposes property tax on petitioner Aided School in respect of Sacred Heart Convent Anglo – Indian Higher Secondary school, 338/2, P.J.N. Road, Villupuram – 605 602 and quash the same.)
1. The petitioner is the Sacred Heart Convent Anglo Indian Higher Secondary School, which is stated to be a wholly aided school. The petitioner claims exemption from property tax in terms of amendment to Section 83(c) of the Tamil Nadu District Municipalities Act, 1920 (in short 'Act'). The amendment is dated 11.01.2018 and states that schools that are wholly aided shall stand exempt from the levy of property tax.
2. The question that arises would be as to whether the school is, as claimed by it, wholly aided or otherwise.
3. In this context, learned counsel for the petitioner would draw attention to a series of documents, that had been filed before this Court on 13.09.2019, which reveal that the permanent recognition of the school has been issued as early as on 29.11.1958 and 04.12.1963 and the petitioner is also a holder of 12A certificate issued in terms of the provisions of the Income Tax Act, 1961.
4. The status of the school as aided school is clear from the deficit grant received by it periodically and one such grant, for the period 2012-13, dated 15.05.2015, is placed on file (page 9 of the compilation of typed set dated 13.09.2019).
5. The above documents make it more than abundantly clear that the State has, vide proceedings of the Director of School Education, Chennai dated 15.05.2015 in R.Dis.No.044709/E/E`/2015-1, issued a grant, to the extent of Rs.24,59,904/- to meet the excess of expenditure incurred by the school over and above the expenditure met by fee collections.
6. Learned Special Government Pleader fairly does not dispute, in light of the above factual position, that the petitioner is, in deed, wholly aided and would be entitled to the exemption from property tax, as claimed.
7. In light of the above discussion, the impugned order of assessment dated 14.09.2018 and the consequent demand are set aside. This Writ Petition is allowed. No costs. Connected Miscellaneous Petitions are closed.
