Asstt.Commissioner of Income tax Circle-2, Nagpur V. M/s Vidarbha Cricket Association, Nagpur

ITA 206/NAG/2012

• Counselvise Citation: 20623914 RSA 2012
• Duration Of Justice: 1 year(s) 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 08-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRITI JAIN DAS
• Keywords: Charitable institution; Benefit of exemption
• Section: 12AA; 12; 11

Judgement Text

, , ( - ), IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENC H, (E-COURT), MUMBAI . . , !' , #$% , $& '( BEFORE SHRI H L KARWA, PRESIDENT, & SHRI RAJENDRA, AM ./ITA NO.206/NAG/2012 ( ) * / ASSESSMENT YEAR : 2008-09) THE ACIT CIR.2, NAGPUR VS. VIDARBHA CRICKET ASSOCIATION, CIVIL LINES, NAGPUR- 440001 PAN : AAAAV3410C ( +, /APPELLANT) ( -.+, / RESPONDENT) APPELLANT BY : MS. PRITI JAIN DAS RESPONDENT BY : MR. K P DEWANI DATE OF HEARING : 22.01.2014 DATE OF PRONOUNCEMENT : 22.01.2014 '$/ / O R D E R PER H L KARWA, PRESIDENT : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER OF THE CIT(A)-I, NAGPUR, DATED 30.03.2012, RELATING TO A.Y . 2008-09. 2. IN THIS APPEAL, THE REVENUE HAS RAISED THE FOLLO WING GROUNDS: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, WHETHER THE LD. CIT(A) IS CORRECT IN HOLDING THAT T HE ASSESSEE IS DEEMED TO HAVE BEEN GRANTED REGISTRATION U/S. 12AA OF THE I.T.ACT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT(A) OUGHT TO HAVE EXAMINED WHETHER THE I NCOME HAS BEEN APPLIED FOR CHARITABLE PURPOSES OR NOT BEFORE GRANTING THIS EXEMPTION. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT(A) OUGHT TO HAVE CONSIDERED THAT THE AS SESSEE HAD NOT APPLIED 85% OF THE RECEIPTS FOR THE PURPOSES OF THE TRUST AND THUS, 2 ITA NO.206/NAG/2012 AY:2008-09 THE AMOUNT WHICH HAS NOT BEING APPLIED FOR CHARITAB LE PURPOSE SHOULD HAVE BEEN TAXED AS PER PROVISIONS OF SECTION 11(1)(A). 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT(A) OUGHT TO HAVE HELD ONLY EXPENDITURE ON CRICKET COACHING AS EXPENDITURE FOR CHARITABLE PURPOSES. 5. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT(A) ERRED IN CONSIDERING EXPENDITURE INC URRED BY THE ASSESSEE ON THE NEW STADIUM AT JAMTHA AS APPLICATIO N OF INCOME FOR CHARITABLE PURPOSE TO THE EXTENT THAT THIS INFRASTR UCTURE WAS UTILIZED BY THE ASSESSEE FOR ITS COMMERCIAL PURPOSES SUCH AS RUNNING A CLUB, GIVING SHOPS ON RENT ETC. 6. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT(A) OUGHT TO HAVE DENIED THE BENEFIT OF EXEMPTION U/S. 11 AND 12 OF THE INCOME TAX ACT. 1961 AND UPHELD TH E ADDITION ON ACCOUNT OF THE DEVELOPMENT EXPENDITURE OF RS.3,03,7 33/- AS BEING CAPITAL IN NATURE. 2. AT THE VERY OUTSET, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT IN THE EARLIER YEARS ALSO THE LEARNED CIT(A) HAS ALLOW ED SIMILAR ISSUES/GROUNDS IN FAVOUR OF THE ASSESSEE AND THE SAID ORDERS HAVE BEE N CONFIRMED BY THE TRIBUNAL VIDE ITS ORDERS DATED 26.04.2011 AND 01.02.2013 WHI LE DECIDING THE APPEAL IN ITA NO.178/NAG/2009 FOR A.Y. 2006-07 AND IN ITA NO. 03/ NAG/2012 FOR A.Y. 2007-08 RESPECTIVELY. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE ORDERS OF THE TRIBUNAL FOR A.YS. 2006-07 AND 2007-08 (SUPRA), WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A) FOR THE YEAR UNDER CONSIDER ATION. THE FACTS OF THE CASE OF PRESENT YEAR ARE SIMILAR TO THAT OF THE EARLIER YEA RS, THEREFORE, WE SEE NO REASON TO INTERFERE WITH THE FINDINGS OF THE CIT(A). R ESPECTFULLY FOLLOWING THE ORDERS OF THE TRIBUNAL REFERRED ABOVE, WE DO NOT SEE ANY MERI T IN THE APPEAL PREFERRED BY THE REVENUE. 4. IN THE RESULT, THE APPEAL IS DISMISSED ORDER PRONOUNCED IN THE E-COURT ON THIS 22 ND DAY OF JANUARY, 2014. SD/- SD/- (RAJENDRA) (H L KARWA) ACCOUNTANT MEMBER PRESIDENT MUMBAI, DT : 22 ND JANUARY, 2014 SA 3 ITA NO.206/NAG/2012 AY:2008-09 COPY FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE C.I.T, CONCERNED 4. THE CIT (A)-CONCERNED 5. THE DR, NAGPUR BENCH BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI