Income Tax Appellate Tribunal - Chennai
Prayer For India, Tuticorin vs Assessee on 10 January, 2011
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 vs The CIT - I
6/519, 5th Street Madurai
St. Mary's Colony
Tuticorin
[PAN - AABTP3604Q]
(Appellant) (Respondent)
Appellant by : Shri N.Devanathan
Respondent by : Shri Shaji P.Jacob
ORDER
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, passed u/s 12AA of the Income-tax Act, 1961, dated 10.1.2011, are fixed for hearing today, i.e 3.3.2011.
2. We have heard both parties. In so far as the requisite registration u/s 12AA of the Act by the ld. CIT is concerned, the ld.AR argued that despite the fact that the assessee-trust is created for dong charitable activities, on irrelevant reasons, the ld. CIT has refused to grant registration u/s 12AA of the Act. On the other hand, the ld.DR :- 2 -: SP 4/11 & ITA 196/11 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 mixture of both religious and charitable. The Cochin Bench of the Tribunal in the case of The Society of Presentation Sisters & Another, 318 ITR (AT) 287(Cochin), while dealing with an identical issue, has held that overlapping of religious and charitable activity cannot be taken as a reason to deny exemption u/s 11(1)(a) of the Act, as it cannot render the objects of the trust as not charitable in nature. Consequently, 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 has become infructuous and hence, stands dismissed.
4. In the result, the appeal of the assessee stands allowed and the stay petition stands dismissed having become infructuous.
The order pronounced in the open court on 3.3.2011.
Sd/- Sd/-
(ABRAHAM P GEORGE) ( HARI OM MARATHA )
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated: 3rd March, 2011
RD
Copy to: Appellant /Respondent/CIT(A)/CIT/DR