Kerala High Court Remands Case for Reconsideration of Building Tax Exemption for Marthoma Syrian Church

Court Finds Potential Charitable Purpose in Accommodation for Retired Clergymen; Orders Re-evaluation of Tax Exemption Application

In a notable judgment dated August 22, 2025, the Kerala High Court, presided by Justice Ziyad Rahman A.A., has remanded the case concerning Marthoma Syrian Church's plea for exemption from building tax. The church had sought exemption under Section 3(1)(b) of the Kerala Building Tax Act, 1975, for a building used to house retired and aged clergymen and their families, citing charitable purposes.

The controversy arose when the Government of Kerala rejected the church's application for tax exemption, arguing that the building was not principally used for religious activities. The church contended that the building provides free accommodation to individuals who have served in its charitable and religious institutions, qualifying it for exemption under the Act.

Upon detailed examination, the court emphasized the definition of 'charity' within the statutory framework, asserting that charitable activities must extend services without remuneration. Justice Rahman acknowledged the church's claim that the building serves retired clergymen and families without charge, suggesting a charitable purpose.

The judgment referenced multiple precedents, including the Supreme Court's interpretation of charitable activities in similar contexts. The court noted that the application of the Kerala Building Tax Act requires a nuanced understanding of 'charity,' especially when services are provided to individuals associated with religious or charitable institutions.

Justice Rahman concluded that while the building's primary use for religious activity was absent, the exemption claim warranted reconsideration due to the charitable nature of the services provided. The judgment mandates the 1st respondent to reevaluate the exemption application, considering the free accommodation offered to those who previously served the church's charitable and religious institutions.

This case highlights the intricate balance between statutory interpretation and the practical implications of charitable activities, setting a precedent for similar tax exemption disputes.

Bottom Line:

Kerala Building Tax Act, 1975 - Exemption from building tax under Section 3(1)(b) - Building used for charitable purposes - Accommodation provided to retired and aged clergymen and their families - Determination of 'charitable purpose' requires consideration of whether the building is utilized for free accommodation for individuals associated with charitable/religious activities managed by the petitioner.

Statutory provision(s): Kerala Building Tax Act, 1975

Marthoma Syrian Church v. State of Kerala, (Kerala) : Law Finder Doc id # 2781310