JUDGMENT : (Prayer: Writ Petition filed under Article 226 of the Constitution of India praying for the issuance of Writ of Certiorarified Mandamus, calling for the records which culminated in the impugned order of the 1st respondent bearing Rc.No.8024/2018/B3, dated 11.03.2019, quash the same and consequently direct the 1st respondent to pass an order exempting the lands of the petitioner from payment of the Urban Land Tax under Section 27(1)(a) of the Urban Land Tax Act, 1966.) 1. The petitioner is the Arulmigu Marundeeswarar Thirukoil at Thiruvanmiyur (referred to hereinafter as ‘temple’) and the challenge is to proceedings of the Commissioner of Land Reforms, dated 11.03.2019. The petitioner is a public religious temple of great antiquity. The deity, Marundeeswarar owns several properties at Thiruvanmiyur, Pallavakkam, Neelankarai and North Chennai that have been endowed unto the temple over the centuries. 2. The petitioner claims that the income derived from the letting out of the lands has been utilized fully for the purposes of the temple. There is no dispute in regard to the ownership of the lands insofar as they form part of the Statutory Property Register that has been maintained by the Hindu Religious and Charitable Endowments Department which oversees the administration and management of the temple. 3. The management of the temple is as per the scheme that was formulated on 22.09.1969. The petitioner, in the belief that it is entitled to an exemption in terms of the provisions of the Tamil Nadu Urban Land Tax Act, 1966 (referred to hereinafter as ‘Act’) from remittance of Urban Land Tax (in short ‘ULT’) made a representation to the 1st respondent/the Commissioner of Land Reforms (R1/CLR) on 09.02.2005 seeking such exemption. 4. On 18.07.2018, proceedings came to be passed confirming the levy of the Urban Land Tax as against which W.P.No.25200 of 2018 was filed by the petitioner. The Writ Petition was disposed permitting the petitioner to re-submit a copy of the representation insofar as it had been the stand of the respondent that the representation has not been received by him. A direction was issued to the respondent to dispose the same after hearing the petitioner and to maintain status quo in terms of enforcing the demand, till such time, an order was passed. 5. A direction was issued to the respondent to dispose the same after hearing the petitioner and to maintain status quo in terms of enforcing the demand, till such time, an order was passed. 5. The petitioner was thereafter heard and called upon to furnish its financial records including Audited Income and Expenditure Statement for the faslies 1423, 1424 & 1425 corresponding to 2014, 2015 & 2016 of the Gregorian Calendar. The impugned order has come to be passed by the first respondent recording categorically that he has taken note of the Audited Income and Expenditure Statement and other financial records. 6. A specific finding of fact is recorded to the effect that the rental income earned by the petitioner from the lands let out, are being utilized only for the purposes of the temple. The officer computes average net income, average net expenditure, average percentage of ULT to the total net income and average percentage of Urban Land Tax to total net expenditure, as follows: Average Net Income Rs.11,66,27,347/- Average Net Expenditure Rs.11,63,63,275/- Average % of ULT of the total Net Income 0.013% Average % of ULT of the total Net Expenditure 0.013% 7. Thus, while accepting the position that there was no diversion of funds and the rental income was being deployed towards temple premises only, the respondent rejects the exemption on the ground that the ULT computed as payable was an insignificant component of the total net expenditure, barely 0.013% of a sum of Rs.11,63,63,275/- which would not cause any undue hardship to the petitioner. 8. This finding has been inspired by the language under Section 27 of the Act, extracted below: “27. Power of Government to exempt or reduce urban land tax - (1) The Government, if satisfied that the payment of urban land tax in respect of any class of urban lands or by any class of persons will cause undue hardships, they may, subject to such rules as may be made in this behalf, by order- (a) exempt such lands or persons from the payment of the urban land tax, or (b) reduce the amount of such urban land tax whether prospectively or retrospectively.” 9. Incidentally, the provisions of Section 29 of the Act have been touched upon in the course of hearing. Incidentally, the provisions of Section 29 of the Act have been touched upon in the course of hearing. Though not very germane, to remove all doubt and for the sake of clarity, I extract Section 29 below as well as elucidate on why Section 29 is inapplicable: “29.Exemptions – Nothing in this Act shall apply to - (a) any urban land owned by the State or the Central Government. (b)......... (c) any urban land owned by a religious institution which is set apart for public worship and is actually so used, including any urban land owned by such institution and which is appurtenant thereto but not including any urban land owned by such institution and - (i) which is vacant, or (ii) in which buildings from which income is derived have been constructed; (d).......... ..............” 10. Section 29 applies only to land which houses a temple or which has been set aside for public worship and is so used. In the present case, the lands in respect of which exemption is sought are admittedly not compliant of the lands referred to in Section 29(c). 11. In this connection, it is relevant to note the finding of the fact recorded by the 1st respondent to the effect that the utilization of funds, that is, the rental income, is only for temple purposes and there has been no diversion thereof. 12. Per contra and for their part, learned counsel for the respondents defend the impugned order arguing that it is in line with the mandate under G.O.Ms.No.1834, Revenue Department, dated 29.10.1983, the latest in a line of Government Orders passed in regard to the grant of exemption. There are certain conditions set out under the aforesaid G.O. that ought to have been satisfied by an entity seeking exemption and, according to the respondent, the petitioner has not satisfied such conditions. I will presently advert to the aforesaid GO and the conditions stipulated thereunder. 13. Notably though, the rejection of the claim for exemption under the impugned order is not by invoking G.O.Ms.No.1834. In fact, there is no reference to this G.O. at all notwithstanding that the impugned order is dated 11.03.2019 long after the G.O. cited by the State. 14. The rejection is solely on the ground that no undue hardship is caused to the petitioner by calling upon it to remit tax. In fact, there is no reference to this G.O. at all notwithstanding that the impugned order is dated 11.03.2019 long after the G.O. cited by the State. 14. The rejection is solely on the ground that no undue hardship is caused to the petitioner by calling upon it to remit tax. Section 27, as extracted above authorizes the State, to grant an exemption from the payment of ULT, if satisfied that the payment of Urban Land Tax by any class of persons, would cause undue hardship. 15. A series of Government Orders have been passed commencing from G.O.Ms.No.1947, dated 17.09.1976, identifying and recognizing religious institutions, as a class, to be entitled for the grant of the exemption from the levy of ULT. The preamble to the first of the GO’s is G.O.Ms.No.1947, Revenue Department, dated 17.09.1976 that reads as follows: “The levy of tax on Urban Lands was brought into effect in the first instance in Madras City from Fasli 1373 (i.e. from 1st July, 1963) by the enactment of the Tamil Nadu Urban Land Tax Act, 1966 (Tamil Nadu Act 12 of 1966). Since then, the Act has been amended from time to time and the levy of Tax has been extend to amend the Urban Lands in the City of Madurai and in the Municipal towns of Coimbatore, Tiruchirapalli and Salem besides the Madras City Belt Area. The structure of tax has also undergone changes from time-to-time, the last of such changes been introduced by the Tamil Nadu Urban Land Tax (Amendment) Act, 1975 (Tamil Nadu Act 49 of 1975) which came into effect on and from the 1st July 1975. The objects of the Act are to augment the resources of the State to carry out the Slum Clearance Scheme, for housing schemes relating to low income groups in the State, etc. In the Act, certain concessions have been provided statutorily for educational, religious, charitable and philan thropic institutions by way of exemption from the levy of tax in respect of certain lands of such institutions. In the Act, certain concessions have been provided statutorily for educational, religious, charitable and philan thropic institutions by way of exemption from the levy of tax in respect of certain lands of such institutions. However, representations have been received from such institutions to the effect that the Urban Land Tax levied on them, even after such concession, is casting a burden on the institutions and that with the income they derive from their building properties on the urban lands and otherwise they have not been above to meet the commitments connected with the objects of these institutions. Other institutions like Community Recreational Centres, Clubs, etc., which have no profit motive and commercial institutions like Cinema Studios and Cinema Theatres have also made representations for concessions in the levy of Urban Land Tax.” 16. With the recognition of, and exemption granted to religious institutions by virtue of the authority under Section 27 of the Act, there is a presumption that the payment of Urban Land Tax causes undue hardship to them. I am thus of the considered view that the authority has erred in re-visiting the aspect of undue hardship, as it has been taken none of the accepted by the State in the aforesaid Government Order. There is no other reason for the denial of exemption and the impugned order is thus set aside. 17. On the question of grant of exemption, G.O.Ms.No.1834, Revenue Department, dated 29.10.1983 was passed taking note of the suggestions of the Urban Land Tax Exemptions Committee constituted under G.O.Ms.No.461, Revenue Department, dated 17.03.1983, as it was felt that the criteria for grant of exemption should be revisited and reformulated. Taking note of the suggestions of the committee, the criteria for exemption have been revised as follows: “The Government have examined the above recommendations of the Urban Land Tax Exemption Committee and agree with their recommendations. Accordingly, the Government direct that the following revised norms and guidelines, be adopted while examining cases for grant of exemption of Urban Land Tax from educational, religious, charitable and philanthropic institutions: (1) The Institution should have been recognised as Charitable and exemption granted under section 12A(a) of the Income Tax Act, 1961. The institution seeking exemption from the Tamil Nadu Urban Land Tax Act, should be a public trust and not a private trust. The institution seeking exemption from the Tamil Nadu Urban Land Tax Act, should be a public trust and not a private trust. The cases of trusts seeking exemption would be subject to their satisfying the requirements of being a public Trust. After deducting all the inevitable charges like payment of local taxes, repairs and maintenance etc., the institutions should spend atleast 90% of the net income on their objectives and purposes. Such expenditure could be incurred in a block period of three years. The expenditure on establishment charges in respect of such institutions would be subject to a ceiling of 40% of its income while determining its eligibility for exemption. Transfer to a capital or a reserve fund will be subject to a ceiling of25% of the balance amount of income after deducting the expenditure on staff (subject to ceiling of 40%) and other inevitable expenses like electricity charges maintenance, repair charges etc., while determining its eligibility for exemption.” 18. The procedure to be followed for the grant of exemption has been elaborated in the following terms: “In the matter of proceedings of the cases for considering exemption from Urban Land Tax, the following procedure shall be adopted: In cases of requests from all institutions and Trusts the Director of Urban Land Tax will cause the accounts duly verified by the concerned Assistant Commissioner, Urban Land Tax. He will also satisfy himself about the reasonableness of expenses on repairs and maintenance of buildings claimed by the Institutions. The Commissioner of Land Reforms is requested to send proposals in respect of the Institutions seeking exemption from Urban Land Tax in the proforma annexed to this G.O. (5 copies each) to be placed before the Urban Land Tax Exemption Committee for its consideration.” 19. Since admittedly, R1 has lost sight of the applicable G.O. and has rejected the claim of exemption on an erroneous premise, while setting aside the order, the petitioner is permitted to appear before the Authority on 25.07.2022 without awaiting any further notice with a copy of the financial records (though the same are already on record) as well as any other documents for establishing its entitlement for exemption. After hearing the petitioner, R2 shall pass an order within a period of four (4) weeks thereof i.e. on or before 26.08.2022 in line with the parameters / criteria set out under G.O.Ms.No.461, dated 17.03.1983. 20. After hearing the petitioner, R2 shall pass an order within a period of four (4) weeks thereof i.e. on or before 26.08.2022 in line with the parameters / criteria set out under G.O.Ms.No.461, dated 17.03.1983. 20. This Writ Petition is disposed as above. No costs. Consequently, connected Miscellaneous Petitions are closed. List on 29.08.2022 for production of orders.