M/S LUDHIANA DISTRICT CRIKET ASSOCATION, LUDHIANA V. INCOME TAX OFFICER (EXEMPTION),WARD, JALANDHAR

ITA 22/ASR/2019

AI Insights

The case involves the Ludhiana District Cricket Association appealing against the order of the Ld. Commissioner of Income Tax (Appeals)-2, Jalandhar, which confirmed the addition of Rs. 7,90,442 to the association's income for the Assessment Year 2015-16. The primary contention was the denial of exemption on the grounds that the association was not registered under section 12AA or approved under section 10(23C) of the Income Tax Act, 1961. The association argued that since their application for registration was not responded to within the statutory period, it should be presumed that the registration was granted (deemed approval). However, both the Assessing Officer and the CIT(A) rejected this claim, leading to the appeal to the Income Tax Appellate Tribunal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 114575 (ITAT-AMRITSAR)
• Duration Of Justice: 4 year(s) 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 25-07-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 09-01-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 12; 11; 143(3); 12A; 12AA; 10(23C)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A. No. 22/Asr/2019 Assessment Year: 2015-16 M/s Ludhiana District Cricket Association, 7-R, Industrial Area-B Ludhiana (Punjab) [PAN: AAAAL 2032N] Vs. Income Tax Officer, (Exemptions) Ward, Jalandhar (Appellant) (Respondent) Appellant by : None Respondent by: Sh. Rajiv Wadhera, Sr. DR Date of Hearing: 26.07.2023 Date of Pronouncement: 04.08.2023 ORDER Per Dr. M. L. Meena, AM: This appeal has been filed by the by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-2, Jalandhar dated 01.10.2018 in respect of Assessment Year: 2015-16. ITA No. 22/Asr/2019 Ludhiana Distt. Cricket Association v. ITO 2 2. The assessee has raised the following grounds of appeal: “1. That the ld. CIT(A) has erred in confirming the action of the Assessing Officer in assessing the income at Rs.7,90,442/- against the Nil income as declared by the assessee. 2. That the ld. CIT(A) has also erred in disallowing the exemption of income as claimed to the tune of Rs.7,90,442/- and such action of the ld. CIT(A) is against the facts and circumstances of the case. 3. That the ld. CIT(A) has erred in not considering the submissions of the assessee that the application for registration had been made in the year 2007 and since it has not been granted within the stipulate time and, therefore, it should have presumed that the approval has already been granted u/s 12AA and, thus, the denial of exemption u/s 12AA is not proper. 4. That the ld. CIT(A) has summarily followed the order of the Assessing Officer, without analyzing the detailed submissions as made before him. 5. That the appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard or disposed off.” 3. None attended for the assesse. The notice of hearing is received back with the postal remark that the addressee is left. Since, the assessee has been granted sufficient opportunity of being heard by fixing the case for hearing on 21.04.2022, 05.07.2022, 31.08.2022 and the 26.07.2023 and hence, it is decided to hear the ld. DR and adjudicate the appeal on merits of the case. 4. The appellant claimed that it was engaged in the providing sports facilities to the general public to the players for cricket and to shape the ITA No. 22/Asr/2019 Ludhiana Distt. Cricket Association v. ITO 3 future of the young, aspiring players who can represent the state and country in future during the Assessment 2015-2016. The case of the appellant was selected for scrutiny and the Ld. Assessing Officer assessed the income of the appellant at Rs. 7,90,442/- against NIL returned income vide order dated 13.12.2017 passed under Section 143(3) of the Income Tax Act, 1961 (‘the Act’). 5. The assesse being aggrieved with the Assessment Order, went in appeal before the Ld. CIT(A) who has confirmed the addition by observing vide para 4.2 to 4.5 as under: 4.2 I have gone through the assessment order passed by the AO, submissions filed by the appellant and find that total income has been assessed at Rs. 7,90,442 as against Nil income declared by the appellant in the return of income filed. The excess of income over expenditure declared by the appellant in the income & expenditure account filed was brought to tax after denying the claim of exemption of income u/s 11 of the IT Act. The claim was denied by the AO as the appellant society was found to have not been registered u/s 12AA of the IT Act and also no approval was obtained u/s 10(23C) of the IT Act. 4.3 The appellant has justified the claim of exemption of income on the ground that it is entitled to the same under the provisions of IT Act. The appellant has reiterated the submissions filed before the AO at the stage of assessment. It is submitted that the appellant is engaged in providing sports facilities to the general public in the field of cricket and to shape the future of young, aspiring players who can represent the state and country in future. The appellant has stated that an application was made in 2007 and it is presumed that approval has been granted u/s 12 AA of the IT Act. The appellant has placed reliance on certain judicial decisions to support its contentions on the issue of deemed approval. ITA No. 22/Asr/2019 Ludhiana Distt. Cricket Association v. ITO 4 4.4 Having considered the submissions made in this regard, I find that these contentions have already been examined by the AO after making reference to the records. The issue of deemed approval has been discussed by the AO elaborately in para 3 of the assessment order and do not find force in the contentions of the appellant. A careful perusal of the facts clearly reveal that the requisite details have not been furnished by the appellant at the time of seeking approval. Thus, I find that decisions relied upon by the appellant are clearly distinguishable on account of differences in the factual matrix of the present case. 4.5 In the absence of any further evidence being brought on record by the appellant to controvert the findings given by the AO in this regard, I hold that AO was confirmed in denying the claim of exemption. Hence, addition made by the AO is confirmed. 6. We have heard the Ld. DR, perused the material on record, impugned order, and written submission. Admittedly, the appellant society was neither registered u/s 12AA of the IT Act nor approved u/s 10(23C) of the IT Act. The appellant has reiterated the submissions filed before the authorities below AO regarding its activities and filing of an application for registration in 2007 which is to be presumed as deemed approval has been granted u/s 12 AA of the IT Act. The appellant has placed reliance on certain judicial citations in support of its contentions on the issue of deemed approval. In our view, merely filing of an application for grant of registration u/s 12A would not automatically make the appellant eligible for exemption either u/s 12AA or 10(23C) of the Act. ITA No. 22/Asr/2019 Ludhiana Distt. Cricket Association v. ITO 5 7. The contention of the appellant that failure on the part of the authority concerned to pass order within the statutorily period of limitation will give rise to a presumption of deemed registration is not tenable under law. To our understanding, there is no concept of deemed approval under the mandate as rightly examined by the authorities below by distinguishing the case laws cited by the appellant on the factual matrix of the instant case. In view of that matter we find no error or perversity in the order passed by the Ld. CIT(A) to the facts on record. 8. In the above view, we do not find any merit or substance in the appeal of the assessee and Accordingly, the impugned order of the Ld. CIT(A) confirming addition of Rs. 7,90,442/-, is sustained. 9. In the result, the appeal of the assesse is dismissed. Order pronounced in the open court on 04.08.2023 Sd/- Sd/- (Anikesh Banerjee) (Dr. M. L. Meena) Judicial Member Accountant Member *GP/Sr.PS* Copy of the order forwarded to: (1) The Appellant: (2) The Respondent: (3) The CIT(Appeals) (4) The CIT concerned ITA No. 22/Asr/2019 Ludhiana Distt. Cricket Association v. ITO 6 (5) The Sr. DR, I.T.A.T. True Copy By Order