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of <h1>Appeals dismissed on tax exemption for properties. Interpretation of 'charitable purpose' clarified.</h1> The appeals were dismissed, affirming that the properties in question did not qualify for tax exemption under Section 115(4) of the Delhi Municipal ... - Issues Involved:1. Applicability of Section 115(4) of the Delhi Municipal Corporation Act, 19572. Interpretation of 'Charitable Purpose' under Section 115(4)3. Meaning and Scope of 'Supported Wholly or in Part by Voluntary Contributions'4. Assessment of Property Tax Exemption for Educational InstitutionsSummary:1. Applicability of Section 115(4) of the Delhi Municipal Corporation Act, 1957:The appeals addressed the scope of Section 115(4) of the Delhi Municipal Corporation Act, 1957, which provides exemptions from general tax for buildings used for charitable purposes. The main contention was whether the properties in question qualified for this exemption.2. Interpretation of 'Charitable Purpose' under Section 115(4):The court examined whether the activities conducted by the societies involved constituted 'charitable purposes.' It was emphasized that education per se is considered a charitable purpose. However, it was clarified that if education is imparted with a profit motive, it does not qualify as a charitable purpose under the Act. The court referred to various precedents, including Pemsel's case, to underline that an element of public benefit or philanthropy must be present for an activity to be deemed charitable.3. Meaning and Scope of 'Supported Wholly or in Part by Voluntary Contributions':The court deliberated on the interpretation of the term 'supported wholly or in part by voluntary contributions.' It was argued that the test for voluntary contributions should be qualitative and not merely quantitative. The court concluded that the term 'supported' implies sustenance or maintenance, and the society must show dependence on voluntary contributions for its support each year. The court also noted that contributions must be voluntary and not compulsory donations made under any form of compulsion or expectation of adverse consequences.4. Assessment of Property Tax Exemption for Educational Institutions:The court analyzed whether the properties used by the societies for running educational institutions were eligible for tax exemption. It was found that the Green Field School, run by the appellant society, did not qualify for exemption as it operated on commercial lines and generated profits. The court emphasized that the society must be supported by voluntary contributions to claim exemption. The court upheld the High Court's findings that the society was not entitled to exemption under Section 115(4) of the Act.Conclusion:The appeals were dismissed, affirming that the properties in question did not qualify for tax exemption under Section 115(4) of the Delhi Municipal Corporation Act, 1957. The judgment clarified the interpretation of 'charitable purpose' and the requirement for societies to be supported by voluntary contributions to claim tax exemption.
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