M/s. Prayer for India, Tuticorin V. CIT, Madurai

ITA 196/CHNY/2011

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 1043 (ITAT-CHENNAI)
• Duration Of Justice: 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 03-03-2011
• Assessment Year: 2008-2009
• Appeal Filed On: 09-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHENNAI BENCH A : CHENNAI [BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI ABRAHAM P GEORGE, ACCOUNTANT MEMBER] S.P.NO.4/MDS/2011 & I.T.A.NO.196/MDS/2011 ASSESSMENT YEAR : 2008-09 M/S PRAYER FOR INDIA 6/519, 5 TH STREET ST. MARYS COLONY TUTICORIN VS THE CIT I MADURAI [PAN - AABTP3604Q] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI N.DEVANATHAN RESPONDENT BY : SHRI SHAJI P.JACOB O R D E R PER HARI OM MARATHA, JUDICIAL MEMBER: THE STAY PETITION AND THE APPEAL OF THE ASSESSEE, DIRECTED AGAINST THE ORDER OF THE LD. CIT-I, MADURAI, PASSE D U/S 12AA OF THE INCOME-TAX ACT, 1961, DATED 10.1.2011, ARE FIXED FO R HEARING TODAY, I.E 3.3.2011. 2. WE HAVE HEARD BOTH PARTIES. IN SO FAR AS THE RE QUISITE REGISTRATION U/S 12AA OF THE ACT BY THE LD. CIT IS CONCERNED, THE LD.AR ARGUED THAT DESPITE THE FACT THAT THE ASSESSEE-TRUS T IS CREATED FOR DONG CHARITABLE ACTIVITIES, ON IRRELEVANT REASONS, THE L D. CIT HAS REFUSED TO GRANT REGISTRATION U/S 12AA OF THE ACT. ON THE OTH ER HAND, THE LD.DR SP 4/11 & ITA 196/11 :- 2 -: SUPPORTED THE ORDER OF THE LD. CIT. WE HAVE FOUND THAT THE TRUST WAS CREATED ON 12.7.2007. A COPY OF THE TRUST DEED WAS ALSO FILED. THE OBJECTS OF THE TRUST ARE FOUND TO BE CHARITABLE IN NATURE. THE LD. CIT HAS OBSERVED THAT THE OBJECTS OF THE TRUST ARE MIXT URE OF BOTH RELIGIOUS AND CHARITABLE. THE COCHIN BENCH OF THE TRIBUNAL I N THE CASE OF THE SOCIETY OF PRESENTATION SISTERS & ANOTHER, 318 ITR (AT) 287(COCHIN), WHILE DEALING WITH AN IDENTICAL ISSUE, HAS HELD THA T OVERLAPPING OF RELIGIOUS AND CHARITABLE ACTIVITY CANNOT BE TAKEN A S A REASON TO DENY EXEMPTION U/S 11(1)(A) OF THE ACT, AS IT CANNOT REN DER THE OBJECTS OF THE TRUST AS NOT CHARITABLE IN NATURE. CONSEQUENTL Y, WE DIRECT THE LD. CIT TO GRANT REGISTRATION TO THE ASSESSEE-TRUST U/S 12AA OF THE ACT. 3. IN VIEW OF OUR ABOVE FINDING, THE STAY PETITION HA S BECOME INFRUCTUOUS AND HENCE, STANDS DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS AL LOWED AND THE STAY PETITION STANDS DISMISSED HAVING BECOME INFRUC TUOUS. THE ORDER PRONOUNCED IN THE OPEN COURT O N 3.3.2011. SD/- SD/- (ABRAHAM P GEORGE) ACCOUNTANT MEMBER ( HARI OM MARATHA ) JUDICIAL MEMBER DATED: 3 RD MARCH, 2011 RD COPY TO: APPELLANT /RESPONDENT/CIT(A)/CIT/DR