M.C.R. Rajagopala Chettiar Memorial School vs State of Tamil Nadu and Others

Swamikkannu, J.—This writ petition is filed under Article 226 of the Constitution of India for the issue of a writ of mandamus forbearing the

respondents from applying the provisions of the Urban Land Tax Act to the land in S. No. 387/2 (T.S. No. 220/4) Sanganur Village, Coimbatore,

belonging to the petitioner trust

It is inter alia stated in the affidavits accompanying the writ petition that with a view to perpetuate the memory of M. Chinna Rangaswamy

Chettiar, M.C.R. Rajagopal Chettiar son of M. Chinna Rangaswami Chettiar created a trust on 2-12-1963 in and by which he directed the

schools and hospitals should be run in the name of the trust. On 2-12-1963 itself M.C.R. Rajagopal Chettiar executed a will bequeathing shares in

certain companies for the trust He also bequeathed in the will a house giving life interest to his wife. In furtherance of the object of the trust, for the

purpose of constructing a school, properly was purchased under two sale deeds, one on 30-8-1972 of an extent of 35 cents in G.S. No. 387/2

(T.S. No. 220/4) at Sanganur Village and another extent of 35 cents in the same survey number under another sale deed dated 30-11-1972. The

total extent is 12 grounds and 1, 161 sq. ft On 22-12-1973, the Trust Board in its proceedings resolved to put up constructions for the school

building, spending about more than a lakh of rupees. The Trust Board also resolved that the school be run in the name of M.C.R. Rajagopala

Chettiar Memorial School. On 27-4-1976, in its meeting the Trust Board decided about the management of the school and also about the opening

of the school.

It is also stated in the affidavit that the entire extent is used for educational purposes and the land is not used for any other purpose. The school

has no independent resources of its own and it is run by the trust among other charitable activities of the trust. The trust does not own any

substantial items of properties. Therefore the school is to fend for itself from out of the tuition fees and other fees collected from the students as

authorised by the Government. Any imposition of tax on the school wilt be a burden and will greatly hamper the achievement of the object of the

school, namely, imparting education to the weaker sections of the community and to provide them equal opportunities in life. It is further averred

that the Assistant Commissioner, Urban Land Tax, Coimbatore did not have proper appreciation of the provisions of the Urban Land Tax Act and

determined the tax at Rs. 1,321/- every year which is a recurring one. The Assistant Commissioner is also threatening to take coercive steps to

collect the tax for faslis 1385 to 1388. The Assistant Commissioner, Urban Land Tax and the Urban Land Tax Officer cum Tahsildar are

threatening to take coercive steps if the tax for faslis 1389 and 1390 is not paid The petitioner was under the bona fide impression that in order to

relieve the school of the burden of tax liability under the Act, it should apply to the Government. The Government in its letter No. 112I96/U2/77-5

dt. 27-3-1981 wrote to the petitioner stating that the exemption asked for cannot be granted without considering the relevant facts. On a further

close consideration, the petitioner came to understand that it is not liable to pay the urban land tax as it is exempt from the provisions of the Act.

The fact that the entire land is only used for school and educational ,purposes is not disputed and cannot be disputed The entire extent of land is

covered by the school building and a small playground for the students of the school. u/s 29(h) of the Act, the land used by the school for purposes

directly connected with the education is completely excluded from the provisions of the Act. It is further averred that in the light of the provisions of

Section 29(h) of the Act, the Assistant Commissioner, Urban Land Tax, Coimbatore, has no authority in law to call upon the petitioner to pay the

urban land tax. It is also further submitted that the Commissioner of Income Tax, Coimbatore passed an order on 5-3-1979 stating that M. Chinna

Rangasamy Chettiar Charity Trust, Coimbatore, will qualify for exemption u/s 80G of the Income Tax Act, 1961 in the hands of the donor subject

to the limits prescribed therein.

In the counter it is contended by the respondents that it has been laid down under Explanation I to Clause (h) of Section 29 of the Tamil Nadu

Urban Land Tax Act, 1966 that schools or colleges shall mean only such schools or colleges which are educational institutions recognised either by

the State Government or by any University as the case may be. But in this case, the school run by the petitioner trust in T.S. No. 220/4, Ward XII,

Block 15 of Sanganur Village is not a recognised one. Further the Government order says that all institutions recognised as charitable institutions

under the Indian Income Tax Act will be dealt with as such for the purpose of concessions under the Tamil Nadu Urban Land Tax Act. Enquiry

reveals that the petitioner trust runs an educational institution only and it was not recognised under the Income Tax Act. The petitioner has not

produced the exemption order issued by the Income Tax authorities. The exemption u/s 29(h) can be granted only for the recognised educational

institutions and not for unrecognised educational institutions.

The point for consideration is, whether the petition is maintainable and if so whet her the relief prayed for can be granted by invoking the

extraordinary original jurisdiction under Article 226 of the Constitution of India?

It is seen that no order of the Income Tax Department has been produced either before the Urban Land Tax Authorities or before this Court.

So, the plea that the Income Tax authorities had granted exemption to the institution cannot be upheld and relied on for the sake of disposing of this

petition. The other contention that it is an educational institution and the same has been created out of the trust also cannot be taken as a ground for

exempting the institution from the levy of urban land tax since it is only those schools or colleges which are educational institutions recognised either

by the State Government or by any University shall be eligible for the exemption as per the provisions of the Act. Therefore, a careful scrutiny of

Section 29 of the Urban Land Tax Act together with the facts that have been submitted, this Court is of the opinion that no writ, much less a writ of

mandamus, can be issued. There is no merit in this writ petition. The writ petition is dismissed with costs. Counsel''s fee Rs. 250A.