Court grants partial property tax exemption to CHAD building, upholds tax demand for college buildings.

The court partially allowed the writ petition, granting exemption from property tax for the CHAD building but upholding the tax demand for the college buildings. The decision emphasized the need for a nuanced approach to exemptions, recognizing the charitable work of the institution while adhering to statutory provisions. The court highlighted the importance of sustaining charitable activities through permissible revenue generation and called for legislative clarity to support genuine charitable institutions.

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Issues Involved:
1. Exemption from property tax for CHAD building and College building.
2. The applicability of the Government Order (G.O.) from 1933.
3. The procedure followed in the disposal of the representation.
4. The classification of the petitioner as a charitable institution.
5. The relevance of the amendment to the Coimbatore City Municipal Corporation Act, 1981.

Detailed Analysis:

1. Exemption from Property Tax for CHAD Building and College Building:
The petitioner, a registered society managing the Christian Medical College and Hospital, challenged the property tax demand for CHAD and College buildings. The petitioner argued that these buildings should be exempt under Section 123(e) of the Coimbatore City Municipal Corporation Act, 1981, which exempts "charitable hospitals and dispensaries but not including residential quarters attached thereto."

2. Applicability of the Government Order (G.O.) from 1933:
The petitioner cited G.O. No. Ms.2270 L & M from 1933, which recognized the institution as a charitable hospital and granted property tax exemption. The G.O. acknowledged that the hospital provided free treatment to the poor and collected fees from those who could pay, which did not negate its charitable status. The court noted that this historical context was relevant but pointed out that the statutory provisions and amendments must be considered for current applicability.

3. Procedure Followed in the Disposal of the Representation:
The petitioner objected to the group discussion format used to address their representation for exemption, arguing that it was inappropriate for such matters. The court found no inherent issue with group discussions if officials could handle submissions precisely and in detail. However, the court emphasized that personalized hearings would be more suitable for claims of exemption.

4. Classification of the Petitioner as a Charitable Institution:
The court examined whether the petitioner qualified as a "charitable institution" under Section 123(e). It was noted that the institution provided free treatment to a significant portion of patients and charged fees from those who could afford it, which was necessary to sustain its charitable activities. The court referenced previous judgments affirming that earning profits incidentally to charitable activities does not disqualify an institution from being considered charitable, provided the profits are used to further its objectives.

5. Relevance of the Amendment to the Coimbatore City Municipal Corporation Act, 1981:
The respondents argued that the 1994 amendment to the Act, which required educational institutions to remit property taxes, applied to the petitioner's college buildings. The court agreed that the statutory amendment excluded educational buildings from exemption, regardless of their charitable nature. Consequently, the court upheld the tax demand for the college buildings but quashed the demand for the CHAD building, recognizing it as part of the charitable hospital activities.

Conclusion:
The court partially allowed the writ petition, granting exemption from property tax for the CHAD building but upholding the tax demand for the college buildings. The court emphasized the need for a nuanced approach to exemptions, recognizing the charitable work of the institution while adhering to statutory provisions. The decision underscored the importance of sustaining charitable activities through permissible revenue generation and called for legislative clarity to support genuine charitable institutions.

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