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Madras HC Rejects Private Schools' Plea Seeking Property Tax Exemption

Madras HC Rejects Private Schools' Plea Seeking Property Tax Exemption

Madras HC Rejects Private Schools' Plea Seeking Property Tax Exemption
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A Madras High Court Bench on November 21 rejected a plea by private educational institutions, including the St John's matriculation school, to quash demand notices issued by the city corporation in Madurai for payment of Rs 20.85 crore as property tax.

Disposing their petitions, Justice R Mahadevan agreed with the corporation counsel's view that under the Corporation Act, the institutions should satisfy certain conditions to enjoy exemption from paying property tax.  The HC reiterated that the first condition was that these institutions should be run for philanthropic purposes, and the second condition was that the municipal council must pass a resolution exempting such institutions from paying tax.

The judge observed that petitioners were not philanthropic institutions, and it was not the case that they were running the schools without receiving fees. The court, however, said the schools were at liberty to submit petitions and seek approval from the council for taking exemption. Otherwise, it was for the corporation to take appropriate action to see that property tax was collected from them without any delay.

With inputs from Housing News

Last Updated: Thu Nov 23 2017

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