Charitable property tax exemption is denied for rented portions, and exemption power is limited to class-based relief.

Property tax exemption under the New Delhi Municipal Council Act, 1994 is confined to premises, or identifiable portions of them, that are exclusively occupied and used for charitable purposes; where a portion is rented out, Section 62 withdraws the exemption for that portion and treats it as separately taxable, regardless of whether the rent supports charitable objects. The scheme also does not permit an ad hoc exemption for a single assessee: Section 72(1)(e) only enables amendment of the assessment list after an exemption is otherwise granted, while Section 124 authorises exemption only by resolution for a class of persons, property, or goods. Class-based exemption may still be sought from the Council.

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Issues: (i) Whether a charitable society is entitled to property tax exemption under Section 62 of the New Delhi Municipal Council Act, 1994 in respect of the portion of the building that is rented out; (ii) whether the Council could grant exemption in an individual case under Sections 72(1)(e) and 124 of the New Delhi Municipal Council Act, 1994.

Issue (i): Whether a charitable society is entitled to property tax exemption under Section 62 of the New Delhi Municipal Council Act, 1994 in respect of the portion of the building that is rented out.

Analysis: Section 62(1)(a) grants exemption only to lands and buildings, or portions thereof, that are exclusively occupied and used by a society for charitable purposes and satisfy the conditions in the proviso. Section 62(2) expressly withdraws that exemption where any trade or business is carried on in the property or where rent is derived from it. The rented portion is deemed separately taxable under Section 62(3). The use of rental income for charitable objects does not alter the statutory position.

Conclusion: The society was not entitled to exemption for the rented portion, and the tax demand on that portion was upheld.

Issue (ii): Whether the Council could grant exemption in an individual case under Sections 72(1)(e) and 124 of the New Delhi Municipal Council Act, 1994.

Analysis: Section 72(1)(e) only enables the Chairperson to amend the assessment list to reflect an exemption otherwise granted; it does not itself confer power to grant exemption. The power to exempt is contained in Section 124, which authorises exemption only by resolution in favour of a class of persons, a class of property, or goods. The scheme does not permit an ad hoc exemption to a single assessee in the present controversy.

Conclusion: No individual exemption could be claimed under Sections 72(1)(e) and 124, though the appellant was left free to seek class-based exemption from the Council.

Final Conclusion: The exemption claim failed in relation to the rented portion of the building, while the appellant was given liberty to seek a general exemption from the competent Council on a class basis.

Ratio Decidendi: Under Section 62 of the New Delhi Municipal Council Act, 1994, exemption from property tax is confined to premises exclusively occupied and used for charitable purposes, and rent derived from any portion of the property disqualifies that portion from exemption; the power to exempt under Section 124 is restricted to class-based exemptions by resolution.

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