1988 (6) TMI 45

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....nal petition is the appellant in this appeal. It is a society registered under the Societies Registration Act. It is stated that it is running an educational institution. The institution is exempted under the Income-tax Act as charitable institution. The managing committee of the society decided to construct a building in a plot owned by the institution in the Kasaragod Municipality, which would f....

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.... shall be exempt from the property tax . ...... (c) choultries for the occupation of which no rent is charged and choultries the rent charged for the occupation of which is used exclusively for charitable purposes." The learned single judge held that a shopping complex-cum-lodging house is not a building of the nature contemplated by section 101(l)(c) of the Act and so such a building does n....

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....y for charitable purposes. We are unable to agree with the said submissions. Even assuming that the rent obtained from the said building shopping complex-cum-lodging house is used exclusively for charitable purposes, it will not be sufficient for the purpose of getting exemption under section 101 (1)(c) of the Act. The building, in order to be exempt from the property tax, should be " choultry ". ....