Charitable society tax exemption requires voluntary contributions; school fees and imposed donations did not satisfy section 115(4) conditions.

Exemption from general tax under section 115(4) of the Delhi Municipal Corporation Act, 1957 applies only where a society's lands or buildings are exclusively occupied and used for a charitable purpose, the society is supported wholly or in part by voluntary contributions, its income is applied in promoting its objects, and no dividend or bonus is paid to members. The Delhi High Court held that a school generating substantial fee income and making contributions to the society did not show the required support by voluntary contributions; amounts labelled as building fund and donations were treated as effectively levied on students and guardians. Mere non-distribution of profits or use of income for construction was insufficient, and the tax assessment was sustained.

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Issues: Whether the petitioner-society was entitled to exemption from general tax under section 115(4) of the Delhi Municipal Corporation Act, 1957, on the ground that its school was run for a charitable purpose and was supported wholly or in part by voluntary contributions.

Analysis: Exemption under section 115(4) applies only where the lands or buildings are exclusively occupied and used by a society for a charitable purpose and the society is supported wholly or in part by voluntary contributions, applies its income in promoting its objects, and does not pay dividend or bonus to members. The material on record showed that the school generated substantial fee income and made contributions to the society, rather than the society supporting the school. The payments described as building fund and donations were treated as amounts effectively imposed on students and guardians, not voluntary contributions. Mere non-distribution of profits or application of income to school construction was held insufficient to establish the statutory conditions for exemption.

Conclusion: The petitioner-society did not satisfy the requirements of section 115(4) and was not entitled to exemption from general tax.

Final Conclusion: The impugned assessment of general tax was sustained, and the writ petition failed.

Ratio Decidendi: Exemption for a charitable society under section 115(4) of the Delhi Municipal Corporation Act, 1957 is available only if the society is supported wholly or in part by voluntary contributions and not merely because it runs an educational institution or applies its earnings to its objects.

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