The Kerala High Court while upholding the property tax liability held that mere existence of a chapel in nuns’ residence cannot make the building itself a place intended for “public worship”.
The bench of Justice Gopinath P. has observed that the building is exclusively used as residence for nuns belonging to the congregation of Franciscan Sisters of the Immaculate Heart of Mary convent and cannot be treated as a place set apart for public worship.
Table of Contents
Background
The petitioner/assessee has challenged the demand notice for property tax under the provisions of the Kerala Municipalities Act, 1994 on the ground that the building in question is one exclusively used as residence for nuns belonging to the congregation of Franciscan Sisters of the Immaculate Heart of Mary convent.
The petitioner submitted that the petitioner is exempted under the provisions of Section 12AA of the Income Tax Act, 1961 and the provisions of Section 235 (1) of 1994 Act also entitles the petitioner to claim exemption from the payment of property tax.
The petitioner relied on the judgement of the Supreme Court in Government of Kerala and another v. Mother Superior, Adoration Convent in which it was held that where the main activity is exempt the building which is housing nuns should also be granted exemption from the payment of property tax.
The respondent-municipality contended that in terms of Section 235 (1) (a) of the Kerala Municipalities Act, 1994, only places set apart for public worship or building used exclusively for public worship are entitled to exemption for payment of property tax and the provisions of the Building Tax Act 1975 do not apply for the purpose of determination of the liability to pay property tax under the provisions of the 1994 Act and the fact that the petitioner has sought an exemption under the provisions of the 1975 Act cannot lead to a conclusion that the petitioner is also entitled to exemption from property tax.
The municipality pointed out that the Zonal Revenue Inspector of Vadakkevila, Kollam Municipal Corporation has carried out an inspection and submitted a report which shows that about 40 nuns and about 100 children were staying in the building and though there is a chapel for conducting prayers no other religious functions or the charitable activities are conducted in the building.
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Relevant Provision
Section 235 (1) (a) of the Municipalities Act, 1994 states that the places set apart for public worship, and either actually so used or used for no other purpose shall be exempt from the property tax.
Conclusion
The court opined that The principle laid down by the Supreme Court in Mother Superior, Adoration Convent cannot apply to the determination of the question as to whether the petitioner is liable to pay property tax under the 1994 Act. The principles in Mother Superior, Adoration Convent apply only to the provisions of the 1975 Act where the provisions for exemption are completely different from the provisions contained in the 1994 Act.
The court held that the petitioner is not entitled to any relief in this writ petition.
Is place of worship exempted from property tax?
Section 235 (1) (a) of the Municipalities Act, 1994 states that the places set apart for public worship, and either actually so used or used for no other purpose shall be exempt from the property tax.
Case Title: Franciscan Sisters Of The Immaculate Heart Of Mary Versus The Secretary
Case No.: WP(C) NO. 22784 OF 2024
Date: 30/09/2024
Counsel For Petitioner: K.Latha, Jomton F. Payankan, Gayathri Narendranath, Meera Menon, T.Sukesh Roy
Counsel For Respondent: Thushara James
