Charitable-use exemption turns on actual property use, and horse-racing facilities were held outside the exemption.

Exemption from municipal general tax depends on the actual occupation and use of the property, not on how the income derived from it is applied. Property used for conducting horse races and training horses was held not to be solely used for a charitable purpose, so the exemption under section 202(1)(b) of the Hyderabad Municipal Corporation Act was unavailable. The levy of general tax for the relevant assessment year was upheld on the evidence, and the valuation fixed for the property was also sustained.

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Issues: (i) Whether land and buildings used for running horse races and training horses were solely occupied and used for a charitable purpose within section 202(1)(b) of the Hyderabad Municipal Corporation Act so as to claim exemption from general tax; (ii) whether the general tax could be levied for the assessment year 1966-67; and (iii) whether the valuation of the property at Rs. 4 lakhs required interference.

Issue (i): Whether land and buildings used for running horse races and training horses were solely occupied and used for a charitable purpose within section 202(1)(b) of the Hyderabad Municipal Corporation Act so as to claim exemption from general tax.

Analysis: Exemption under the provision depends on the actual occupation and user of the property, not on the manner in which the income from the activity is applied. The property was used for conducting horse races and training horses for racing, and such use cannot be treated as a benevolent activity for the poor or the deprived. The requirement that the buildings and lands be solely used for a charitable purpose was not satisfied.

Conclusion: The exemption was not available and the property was liable to general tax.

Issue (ii): Whether the general tax could be levied for the assessment year 1966-67.

Analysis: The finding on this point was based on appreciation of evidence, and no error was shown warranting interference.

Conclusion: The levy for the assessment year 1966-67 was upheld.

Issue (iii): Whether the valuation of the property at Rs. 4 lakhs required interference.

Analysis: The valuation fixed by the Small Causes Court and affirmed by the High Court did not disclose any reason for interference.

Conclusion: The valuation was sustained.

Final Conclusion: The exemption-based challenge failed, but the findings on levy for 1966-67 and on valuation were maintained, leaving the appellant entitled to levy general tax from 1967-68 onwards in accordance with law.

Ratio Decidendi: For exemption under a provision granting relief to property solely occupied and used for a charitable purpose, the decisive test is the actual use of the property, and the application of income to charitable objects does not convert a non-charitable user into a charitable one.

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