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TMI Blog1986 (11) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... in the context of the exemption from levy of municipal taxes claimed by the Race Course Club (respondent herein) in respect of 127 acres, 14 goonthas and 95 sq. yards of land along with structures standing thereon, which were sought to be assessed to general tax under section 202 of the Hyderabad Municipal Corporation Act (" Act " in short). The respondent boldly contended and, strangely enough, succeeded in convincing the High Court that section 202(1)(b) of the Act was attracted as occupation and user of the property for running horse races and training of horses, etc., constituted occupation and user of the property for a " charitable purpose " within the meaning of the said provision. Now, section 202(1)(b) of the Act is in these terms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. It has also to be emphasised that it must be the very activity which is carried on on the property which must be charitable and not the application of the income of such activity. What the High Court has completely failed to realise is that the "occupation " of the land and buildings or the " user " of the land and buildings must be for a " charitable purpose " and that it is altogether irrelevant as to the manner in which the income of the club is utilised. Section 202(1)(b) makes no reference to the question as regards the employment of the income of the club or the purpose for which the income is so employed. Exemption is granted only in respect of buildings which are " solely " used, meaning thereby exclusively used, for charitable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant, Municipal Corporation. First, whether the general tax could have been lawfully levied for the assessment year 1966-67. The High Court has rightly taken a view adverse to the appellant on an appreciation of evidence, We do not see any fallacy in the reasoning of the High Court. We, therefore, do not propose to disturb the finding recorded by the High Court in so far as this question is concerned. Secondly, as regards the valuation of the property, the learned judge of the Small Causes Court has valued the property at Rs. 4 lakhs. The valuation made by the Small Causes Court has been confirmed by the High Court. We see no reason to interfere with the valuation as made by the Small Causes Court and confirmed by the High Court. Accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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