Hostels for Working Men and Women Classified as Residential, Not Commercial Properties for Tax Purposes: Madras High Court
The Madras High Court, in a significant judgment delivered by Justice Krishnan Ramasamy, held that hostels for working men and women cannot be classified as commercial properties for the purpose of levying property tax, water tax, and electricity charges. The Court stated that hostel premises are meant purely for residential use and not for conducting any business activity, hence the residential tariff would apply. Court’s Reasoning on Tax Burden The…
