The Supreme Court allows property tax exemptions to hostels for students and housing accommodations for nuns
The Supreme Court while rejecting the government of Kerala’s view to allow property tax exemption in hostels for students and housing accommodation for nuns.
Housing accommodation for nuns and hostels for students
The Kerala Government had approached the Supreme Court which states that there are no exceptions that must be given as housing accommodation for nuns and hostels for students will become housing as apart from religious or education goals and will not, borne by the exception contained in section 3 (1 ) (b) Kerala Building Tax Act, 1975.
No religious/educational activities
Mr. Jaideep Gupta, a senior advocate that emerged on behalf of Kerala’s country believes that the term “building” has been defined in section 2 (e) of the action as the meaning of a separate house, home, etc. And it was in the current case because there were no religious/educational activities carried out at all in the building that accommodated the accommodation of nuns and dormitories that accommodated students, such buildings, which were not basically used for religious purposes, it could not be excluded in action.
Property tax exemptions under Kerala Building Tax Act, 1975
Section 3 (1) (b) Kerala Building Tax Act, 1975 exempts the tax payment for the place used “especially” for religious purposes, charity, or education or as a factory or workshop. The division bench headed by Justice Rohinton Nariman said that housing accommodation for nuns and hostels for students attached to various educational institutions could claim property tax exemptions under Kerala Building Tax Act, 1975.
The court then said that the purpose of religion, charity, or education is intended by the legislature as a qualification for release because they are not related to business or commercial activities.
Purpose of residence is not to benefit but the residence which is integrally connected with religious or education activities
“Nuns live in a neighboring building to the monastery so they can receive religious instructions there, or if students live in hostels near school or college where they have given instructions, it is clear that the purpose of residence is not to benefit but the residence which is integrally connected with religious or education activities, “said the court.
