Summary:
The court also observed that private schools were not purely philanthropic institutions as they were receiving fees. The petitions were filed after the Deputy Revenue Officer and Commissioner of Madurai Corporation sent notices to private schools demanding payment of property tax. Counsel for the respondents argued that the petitioners were private institutions imparting education in a professional manner. The Corporation demanded property tax under Section 121 of the Madurai City Municipal Corporation Act, 1971, which states that all buildings under the Madurai Corporation are assessed to be taxed. Justice R.
Mahadevan observed that such institutional buildings would be exempted from property tax only if the schools were run for charitable purpose and had the approval of the Corporation Council..