A literal formalistic interpretation of the statute is to be avoided in interpreting the beneficial exemptions

Last updated: 12 April 2021

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The Supreme Court of India has ruled that a strict, literal interpretation of tax laws should be avoided when dealing with beneficial exemptions. The court upheld that buildings used as residential quarters for nuns, priests, or student hostels are eligible for tax exemption, as these uses are integrally connected to religious or educational purposes. The dominant purpose of the building's use, rather than its ownership, is key to determining eligibility for exemption.

Court :
Supreme Court of India

Brief :
The Hon'ble Supreme Court of India in Government of Kerala & Anr. v. Mother Superior Adoration Convent [Civil Appeal No. 202 of 2012 and others, decided on March 1, 2021] upheld the judgments passed by the Hon'ble Kerala High Court allowing the exemption of tax on buildings used as residential quarters for nuns, priests or hostel accommodation for students. Held that, a literal formalistic interpretation of the statute is to be avoided in interpreting the beneficial exemptions.

Citation :
Civil Appeal No. 202 of 2012 and others, decided on March 1, 2021

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1 Year PLAN - Rs.~~1999~~

1799

(Excl. of GST ₹323)

2 Years PLAN - Rs.~~3499~~

3149

(Excl. of GST ₹566)

BEST VALUE

3 Years PLAN - Rs.~~4999~~

4499

(Excl. of GST ₹809)

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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