Municipal property tax exemption for a charitable hospital requires records, inspection, and proof of charitable use before decision.

Municipal property tax exemption for a charitable hospital under Section 123(e) turns on whether the premises are used as a genuine hospital or dispensary, excluding residential quarters, and the authority must decide the claim on the basis of relevant records and inspection of the premises. Income-tax registration and exemption were treated as important evidence of charitable character, though not conclusive. The claimant must produce supporting documents, and the municipal corporation must consider those materials together with an inspection report and personal hearing before deciding the exemption claim. The rejection was set aside and the matter remanded for fresh consideration.

---

---

Issues: Whether the petitioner was entitled to exemption from property tax for its hospital and dispensary buildings under Section 123(e) of the Coimbatore City Municipal Corporation Act, 1981, and whether the rejection order required reconsideration.

Analysis: Exemption under Section 123(e) depends on whether the premises constitute a charitable hospital or dispensary, excluding residential quarters, and the issue must be decided on the facts and materials placed before the authority. The Court held that the Corporation could not decide the claim only on papers; it was also required to inspect the premises to verify the nature of the activities carried on there. The petitioner's registration and exemption under the Income-tax Act were treated as substantial evidence of charitable character, though not conclusive by themselves. The Court found that the petitioner must produce the relevant documents in support of the claim, and the Corporation must consider those materials along with an inspection report.

Conclusion: The rejection of the exemption claim was set aside and the matter was remanded to the Corporation for fresh consideration.

Final Conclusion: The petitioner's claim for property tax exemption was not finally negatived, and the authority was directed to reconsider the issue after receiving further documents, conducting inspection, and granting personal hearing.

Ratio Decidendi: A claim for municipal property tax exemption for a charitable hospital must be determined on the basis of relevant records and inspection of the premises, and statutory exemption granted under the Income-tax Act is a significant piece of evidence of charitable status.

---