Capital concession

The registration of the Atash Behrams, Agiaries and Religious Institutions Welfare Society (AARIWS) "is taking time,” reported honorary secretary Bomi Hansotia at a meeting convened on June 26, 2014 in the boardroom of the Bombay Parsi Punchayet (BPP). As the application for registration is pending with the charity commissioner since June 2013 "in whose name do we collect contributions and how do we pay?” he enquired of his colleagues.
Faced with a demand of Rs 5,00,000 as legal fees by senior counsel Rafique Dada, members of this Society are in a quandary for even a bank account has yet not been opened. Dada had represented the Society in the Bombay High Court and had won some reprieve for its members who were challenging the new exorbitant property tax levied by the Bombay Municipal Corporation (BMC). Until 2010 charitable organizations including fire temples paid taxes on the rateable value of a building (based on reasonable rents it could expect to receive) but as per the new order they are expected to pay on the capital value of the property (the market value of the property were it to be sold) whereby the rates could increase as much as 300%.
Perceiving this move as "arbitrary and unconstitutional,” some associations like
AARIWS, BPP and the Property Owners Association had taken the BMC to court. A bench of Chief Justice Mohit Shah and Justice M. S. Sanklecha in the first interim order of December 23, 2013 and a subsequent order of May 2, directed the petitioners to pay municipal taxes at the pre-amended rates plus 50% of the differential between the old and new rates. (Although the oral order had specified 50% of the differential, the written order had erroneously mentioned 25% and was therefore subsequently amended to 50% by a revised order of May 7.)

Since the Justices wanted to hear charitable organizations separately and not along with the bunch of nearly 40 pleas seeking revision, AARIWS subsequently "detagged” itself from the earlier petitioners. Thus, the order of February 24 by Justices Shah and Sanklecha, reiterated that AARIWS "claiming to be a charitable institution shall pay taxes at the pre-amended rate and also the additional tax at the rate of 50% of the differential tax between the tax payable under the old rate and now payable on the basis of capital value of the property… Since the petitioner claims to have paid the full taxes as per amended rates, it will be open to them to adjust whatever is paid in excess of the above formula against the future bills.”
Prochi Shroff of the BPP having been assigned the arduous task of computing the revised rates for each of the BPP properties, BPP chairman Dinshaw Mehta announced that "if there is any confusion” for any trust, they could always consult her.
As per the May 2 order, senior counsel E. P. Bharucha representing the BMC sought leave of the Court "to take up the issue with the Municipal Corporation to bring the rules in line with the provisions of the statute…in view of the arguments being advanced on behalf of the petitioners.” The matter was therefore adjourned to July 4 after the summer vacation. Representing AARIWS in the High Court at different times were Dada with C. S. Bulsara, A. Gokhale, H. Devrajan, Mustafa Doctor, Karl Tamboly, Mihir Nemkar, Burjor Antia and Homiar Vakil instructed by Mulla and Mulla and Craigie Blunt and Caroe.
For the quarter ending April-June 2014, a rebate of one to four percent could be availed of by trusts that paid up the tax before June 30, 2014. This announcement in The Times of India of May 8, 2014 was brought to the notice of those present by Darayesh Katrak representing the Dadysett Charity Trust.
Whilst an appeal would be made to Dada through Mulla and Mulla to reduce his fees, it was decided to open a bank account for AARIWS and request members to pay a contribution of Rs 15,000-20,000 towards legal expenses and a corpus fund plus Rs 5,000 as membership dues. Since not all fire temples in Bombay are members of this Association, an appeal was issued requesting them to lend support.
Following the demise of Mehli Colah, erstwhile chief executive officer of the BPP, it was recommended that Cawas Panthaki, senior executive (welfare), should attend meetings in his stead but the post of AARIWS treasurer occupied by Colah would be filled by Percy Dalal representing Kapawalla Agiary.
Those attending the meeting were AARIWS president Kaizad Hazari, secretary Bomi Hansotia, treasurer Percy Dalal, H. H. Santoke (The Zoroastrian Radih Society), Dr Aspi Mehta (Mevavalla Agiary), Noshir Gandevia (Narielvala Agiary), Darayesh Katrak (Dadysett Charity Trust), Dilbur Patel (F. N. Patel Mazgaon Agiary Trust), Farokh Siganporia (Mazgaon Anjuman Dar-e-Meher), Burjor Tarachand (Anjuman Atash Behram), BPP chairman Dinshaw Mehta, senior executive (welfare) Cawas Panthaki and invitee Farrokh Rustomji.