2010 (8) TMI 977

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..... . In such circumstances, once the registration is given, such type of assessee is exempted from payment of tax on the income derived from the property held for charitable or religious purposes as well as the income which such Trust receives by way of contributions. 2. There is a Society registered under the Societies Registration Act, known as the Professional Societies for Development Action (PRADAN), which society is again a charitable society. This PRADAN decided to create the respondent-Trust as a public charitable trust by the PRADAN Property Holding Trust Deed dated 1st August, 2000. That Trust Deed, which is duly registered, mentions the aims and objects with which the said Trust is created. This respondent-Trust applied for exe .....

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..... radan. No doubt that is also one of the objects of the Trust but there are other objects also such as conducting research in the field of women‟s issues, NGOs and supporting the NGOs in their assistance to the poor people of India, assisting in the promotion of self help groups for women, mutual savings and credit etc. and also to undertake activities for imparting knowledge in the field of vocational training programs for the poor with a view to improve their livelihood etc. These are certainly charitable objects. That apart we do not see how the holding of properties received by way of grants and donations and putting them for the use of other charitable institutions engaged in developmental activities, especially for Pradan, cannot .....

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..... me tax (exemptions) and grant registrations to the assessee trust u/s 12AA. The appeal is allowed with no order as to costs. 3. Ms. Bansal, the learned counsel appearing for the appellant submits that vide the aforesaid Trust Deed, the Settlor-PRADAN, has contributed only ₹ 5000/-; the properties would remain with the Settlor and in such a circumstances, it would not be permissible for the assessee to seek exemption from payment of tax, in as much as Section 11 of the Act provides that the tax is not to be levied on the income only if it is derived from the property also under the Trust. We are not able to appreciate this argument, which may not be relevant while deciding the issue as to whether the respondent-Trust was entitled .....

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