CHHATTISGARH STATE CRICKET SANGH, RAIPUR V. DY COMMISSIONER OF INCOME TAX, EXEMPTION WARD-1, RAIPUR

ITA 265/RPR/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5483 (ITAT-RAIPUR)
• Duration Of Justice: 1 year(s) 5 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: misc
• Appeal Filed On: 27-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P V MISHRA
• Keywords: Charitable institution; Set aside
• Section: 12A; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER AND DR. MITHA LAL MEENA, ACCOUNTANT MEMBER . / ITA NO. 265 /RPR/20 17 CHHATTISGARH STATE CRICKET SANGH, 3 5/75 , PUNJABI COLONY, KATORA TALAB, RAIPUR, CG - 492 001. PAN : AABTC1016F ....... / APPELLANT / V/S. THE DEPUTY COMMISSIONER OF INCOME TAX ( EXEMPTION) - 1, RAIPUR (C.G.) / RESPONDENT A SSESSEE BY : SHRI PRAVEEN JAIN , CA REVENUE BY : SHRI P.V. MISHRA , CIT - DR / DATE OF HEARING : 1 4 .05 .2019 / DATE OF PRONOUNCEMENT : 15 .05 .2019 / ORDER PER PARTHA SARATHI CHAUDHU RY, JM : THIS APPEAL PREFERRED BY THE ASSESSEE EMANATES FROM THE ORDER OF THE LD. CIT(EXEMPTION), BHOPAL DATED 16.10.2017 AS PER GROUNDS OF APPEAL ON RECORD. 2 ITA NO. 265/RPR /20 17 CHHATTISGARH STATE CRICKET SANGH 2. THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS CASE IS REJECTION OF APPLICATION TO GRANT REGISTRATION U/S.12AA OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). 3. THE ASSESSE HAD A PPLIED TO THE LD. COMMISSIONER OF INCOME TAX (EXEM P TION) FOR THE REGISTRATION OF THE ASSESSEES SOCIETY U/S.12AA OF THE ACT ON 18.04.2017. ASSESSEE HAD FILED ALL THE DETAILS AND EXPLANATION REQUIRED BY THE LD. COMMISSIONER OF INCOME TAX. THE ASSESSEE HAS ALSO PRODUCED BOOKS OF ACCOUNTS FOR VERIFICATION AND ALSO SUBMITTED FINANCIALS TO SUPPORT THE CLAIM THAT IT IS CARRYING OUT ONLY CHARITABLE ACTIVITY. THE LD. COMMISSIONER OF INCOME TAX HAS REJECTED THE APPLICATION OF THE ASSESSEE FOR GRANTING REGISTRATION U/S.12AA OF THE ACT AS PER THE FINDINGS AND OBSERVAT IONS APPEARING IN HIS ORDER ON RECORD MOSTLY BECAUSE AS PER THE VIEW OF LD. COMMISSIONER OF INCOME TAX (EXEMPTION) THAT THE ASSESSEE ARE IN RECEIPTS FROM THE BOARD OF CONTROL FOR CRICKET IN INDIA ( BCCI ) EVERY YEAR AND THESE ARE IN NATURE OF TRADE, COMMERCE OR BUSINESS AS PER PROVISO TO SECTION 2(15) OF THE ACT AND THEREFORE, THE ASSESSEE IS NOT CARRYING OUT ANY CHARITABLE ACTIVITIES. 4. AT THE TIME OF HEARING, THE LD. AR OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE SOCIETY IS ONLY RECOGNIZED BODY FOR SELECT ION OF CRICKET PLAYER IN CHHATTISGARH. THE ASSESSEE IS ASSOCIATE MEMBER OF BCCI FORMED SOLELY FOR PROMOTION OF CRICKET IN THE STATE OF CHHATTISGARH. THE MAIN OBJECTS OF THE 3 ITA NO. 265/RPR /20 17 CHHATTISGARH STATE CRICKET SANGH ASSESSEE TRUST ARE TO ENCOURAGE SPORTS FACILITIES AT DISTRICT LEVEL AND TO ENCOURAG E YOUNG AND TALENTED SPORTSMEN AND ALSO TO PROVIDE FACILITY FOR CRICKET AMOUNT THE SPORTSMEN OF CHHATTISGARH. THE ASSESSEE IS BASICALLY ORGANIZING COACHING FOR CRICKET PLAYERS, CONDUCTING MATCHES AT DISTRICT AND STATE LEVEL THROUGH VARIOUS DISTRICT ASSOCIA TIONS, ORGANIZING CAMP FOR THE PLAYERS TO DEVELOP THEIR SKILL FOR NATIONAL AND INTERNATIONAL TOURNAMENTS. APPLICANT DOES NOT CHARGE ANY FEE FROM ANY PLAYERS OR ANY TEAM FOR CONDUCTING MATCHES OR FOR ORGANIZING COACHING/ CAMPS. IN FACT IT FUNDS ALL THESE AC TIVITIES MAINLY OUT OF GRANT RECEIVED FROM BCCI AND BCCI IS PARENT BODY WITH REGARD TO CRICKET. THE LD. CIT(EXEMPTION) IN PARA 7 OF HIS ORDER HAS MERELY POINTED OUT THAT THE ASSESSEE IS CONDUCTING INDIAN PREMIER LEAGUE (IPL) WHICH IS COMMERCIAL IN NATURE AND THE ASSESSEE GETS A SHARE IN IPL FROM BCCI WHICH IS MORE THAN RS.25 LAKHS AND REGISTRATION GRANTED TO BCCI ITSELF HAS BEEN WITHDRAWN. THE LD. AR OF THE ASSESSEE FURTHER SUBMITTED T HAT THE BASIC RESPONSIBILITY OF CONDUCTING IPL MATCHES IS WITH FRANCHISEE TEAMS. IN PREVIOUS YEARS, 2 MATCHES WERE ORGANIZED AT RAIPUR BY GMR (FRANCHISEE OWNER OF DELHI DARE DEVILS). IT IS EXCLUSIVE RIGHT OF FRANCHISEE TO SELECT THE PLACES/ GROUNDS FOR CONDUCT OF MATCHES; FRANCHISEE TEAMS ORGANIZE THE MATCH AND COLLECT THE REVENUE. THE ASSESSEE WAS RESPONSIBLE F OR MAINTENANCE OF GROUND, HOUSE - KEEPING OF STADIUM, MAINTENANCE OF PITCH, PROVIDING ELECTRICITY INCLUDING GENSET, DRINKING WATER MANAGEMENT, DRESSING RO OM MANAGEMENT, EXPENSES OF THE SCORER AND 4 ITA NO. 265/RPR /20 17 CHHATTISGARH STATE CRICKET SANGH ARRANGEMENT OF SECURITY. FRANCHISEE TEAM PAYS LUMPSUM AMOUNT AS REIMBURSEMENT OF EXPENSES INCURRED. THE LD. AR FURTHER SUBMITTED THAT IPL ARE NOT CONDUCTED BY THE ASSESSEE SOCIETY BUT IT IS CONDUCTED BY THE BCCI. THE ASSESSEE SOCIETY NEITHER HAVE ANY RIGHT TO EITHER SELL THE TICKETS NOR RECEIVE ANY SPONSORSHIP, SAME ARE THE INCOME IN THE HANDS OF BCCI. THUS MERELY BECAUSE IPL IS HOSTED BY THE ASSESSEE SOCIETY SAME CANNOT BE TREATED AS COMMERCIAL VENTURE. 5. THE LD. AR OF THE ASSESSEE IN SUPPORT OF HIS SUBMISSIONS HAS PLACED RELIANCE ON THE FOLLOWING DECISIONS: I) JHARKHAND STATE CRICKET VS. DCIT, ITA NO.157/RAN/2017 ITAT RANCHI DATED 15.03.2019. II) DEPUTY COMMISSIONER OF INCOME TAX VS. TAMIL N ADU CRICKET ASSOCIATI ON ITA NOS.2556 & 2557/MDS/2016 ( CHENNAI - TRIB) II) CIT VS. GUJARAT MARITIME BOARD REPORTED AS (2007) 295 ITR 561 (SC) 5.1 THE LD. AR OF THE ASSESSEE FURTHER SUBMITTED THAT A SSESSEE IS AN ASSOCIATE OF BCCI AND SOLE AFFILIATED BODY IN THE STATE OF CHHATTISGARH. NOT ONLY PREDOMINANT BUT THE SOLE OBJECT OF THE SOCIETY IS PROMOTION OF CRICKET AND ALL THE OBJECTS OF THE ASSESSEE SOCIETY REVOLVE AROUND THIS CORE OBJECT. THE OBJECTS OF ALL THE CRICKET ASSOCIATIONS ARE ALMOST SIMILAR TO EACH OTHER. THE ASSESSEE FALLS WELL WITHIN THE DEFINITION U/S.2(15) OF THE ACT AS ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY. THE ASSESSEE IS 5 ITA NO. 265/RPR /20 17 CHHATTISGARH STATE CRICKET SANGH NOT HIT BY THE PROVISO TO SECTION 2(15) OF TH E ACT SINCE THE ONLY ENDEAVOR OF THE ASSESSEES SOCIETY IS TO P ROMOTE THE CRICKET GIVING CHANCE TO YOUNG TALENTED PLAYER SO THAT THEY CAN REPRESENT THE STATE OF CHHATTISGARH. THE ASSESSEE IS AN ASSOCIATE MEMBER OF BCCI AND BCCI GIVES GRANT TO THE ASSESSEE DEPENDING UPON THE LEVEL OF ACTIVITY CONDUCTED BY THE ASSESSEE. THE OBJECTS OF ALL THE CRICKET ASSOCIATIONS ARE ALMOST SIMILAR TO EACH OTHER. WHILE CONDUCTING IPL MATCHES, IT IS ONLY THE MAINTENANCE WORK AND SECURITY ARRANGEMENT THAT HAS BEEN PROVIDED BY T HE ASSESSEE FROM THE GRANT AND MONEY RECEIPTS FROM BCCI AND REVENUE IS COLLECTED AND DEALT WITH BY THE FRANCHISEE OWNER OF THE RESPECTIVE IPL WITH WHICH THE ASSESSEE TRUST IS NOT CONN ECTED. 6. PER CONTRA, THE LD. DR HAS PLACED RELIANCE ON THE ORDER OF THE LD. CIT(EXEMPTIONS). 7. WE HAVE PERUSED THE CASE RECORDS AND HEARD THE RIVAL CONTENTIONS. WE HAVE ALSO ANALYZED THE FACTS AND CIRCUMSTANCES IN THIS CASE. THE ASSESSEE SOCIETY HAS MADE AN APPLI CATION BEFORE THE LD. CIT(EXEMPTION) U/S.12AA OF THE ACT FOR GRANTING REGISTRATION. IT IS SETTLED VIEW AS HELD BY THE VARIOUS CO - ORDINATE BENCH OF THE TRIBUNAL AS WELL AS HONBLE HIGH COURT THAT AT THE TIME OF GRANTING REGISTRATION, THE MATTER TO BE LOOKE D INTO ARE THE OB JECTS OF THE APPLICANT AND WHETHER PAST ACTIVITIES ARE CONCERNED 6 ITA NO. 265/RPR /20 17 CHHATTISGARH STATE CRICKET SANGH WITH SUCH OBJECTS. IF THESE ARE ACCORDING TO THE PROVISION S OF LAW, THEN REGISTRATION CAN BE GRANTED. HOWEVER, IF AT THE ASSESSMENT STAGE, IT IS NOTICED THAT FUNDS ARE NOT U TILIZED FOR CHARITABLE PURPOSES THEN THE ASSESSING OFFICER MAY REJECT THE EXEMPTION U/S.11 AND 12 OF THE ACT IN RESPECT TO THE CONCERN ED ASSESSEE. AT THE TIME OF GRANTING REGISTRATION U/S.12AA OF THE ACT, IF THE OBJECTS ARE CHARITABLE IN NATURE THEN REGIST RATION U/S.12AA HAS TO BE GRANTED TO SUCH ASSESSEE. THAT ON PERUSAL OF THE OBJECTS OF THE ASSESSEE SOCIETY IN THE INSTANT CASE, IT IS PREDOMINANTLY FOR PROMOTION OF CRICKET IN THE STATE OF CHHATTISGARH AND TO BRING OUT NEW TALENT IN THE FIELD OF CRICKET SO THAT THEY CAN REPRESENT THE STATE AS WELL AS COUNTRY UNDER SUPERVISION OF BCCI BEING PARENT BODY OF CRICKET IN INDIA. THE ASSESSEE SOCIETY IS SOLELY AUTHORIZED BODY TO BCCI SO FAR AS THE CHHATTISGARH IS CONCERNED. THE ASSESSEE SOCIETY IS RECEIVING MONEY FROM BCCI IN RESPECT OF CONDUCTING CRICKET COACHING CAMPS, CHARITABLE MATCHES SO THAT FROM ASSESSEE SOCIETY, NEW TALENT CAN BE BROUGHT IN. EVEN WITH REGARD TO THE IPL MATCHES, ALL THE REVENUE TRANSACT ION ARE DONE BY THE FRANCHISE E IN SUCH IPL TOURNAMENT. WHENEVER THE MATCHES ARE HELD IN CHHATTISGARH, THE MAINTENANCE PART AND SECURITY PART ARE TAKEN CARE OF BY THE ASSESSEE AND FOR THIS PURPOSE, CERTAIN AMOUNT IS PAID BY THE BCCI AND THE ASSESSEE HAS TO MEET UP THE EXPENSES FOR THESE ACTIVITIES. THE ASSESSEE SOCIETY IS THEREFORE WELL WITHIN 7 ITA NO. 265/RPR /20 17 CHHATTISGARH STATE CRICKET SANGH THE DEFINITION OF CHARITABLE PURPOSE AS ENSHRINED U/S.2(15) OF THE ACT UNDER THE LIMB OF ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY. NOW THE PROVISO TO SECTION 2(15) OF THE ACT PROVIDES EMBARGO WITH REGARD TO THIS LIMB I.E. ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY SHALL NOT BE A CHARITABLE PURPOSE, IF IT INVOLVES THE CARRYING ON OF ANY ACTIVITY IN THE NATURE OF TRADE, COMMERCE OR BUSINESS OR ANY ACTIVITY OF RENDERING ANY SERVICE IN RELATION TO ANY TRADE, COMMERCE OR BUSINESS, FOR A CESS OR FEE OR ANY OTHER CONSIDERATION. 8. IN ORDER TO ADJUDICATE THE PROVISO TO SECTION 2(15), WE WOULD REVERT TO THE FACTUAL POSITION WITH REGARD TO ISSUE IN HAND: CRICKET IS INDEED AN IMMENSELY POPULAR GAME IN THIS PART OF THE WORLD, AND ANYTHING TO DO WITH CRICKET RESULTS IN MASS INVOLVEMENT OF PUBLIC AT LARGE. THE SHEER STRENGTH OF THESE NUMBERS RESULTS IN HIGHER VISIBILITY OF CRICKETING ACTIVITIES AND TH E SCALE OF OPERATIONS ON WHICH THE WORK FOR DEVELOPMENT OF CRICKET IS TO BE CARRIED OUT. THESE FACTS, BY ITSELF, AND WITHOUT THE ASSESSEE BEFORE US DEVIATING FROM THEIR OBJECTS OR VENTURING INTO TRADE, COMMERCE OR BUSINESS, CANNOT REQUIRE THE ACTIVITIES TO BE TREATED AS COMMERCIAL ACTIVITIES. WHEN A CRICKET STADIUM IS TO BE BUILT, IT HAS TO ACCOMMODATE A VERY LARGE NUMBER OF PERSONS BUT THE SIZE OF THE STADIUM WOULD NOT MEAN THAT THE ACTIVITY IS FOR ANYTHING O THER THAN PROMOTION OF CRICKET. WHEN THE SCALE O F OPERATIONS ARE LARGER, EVEN THE 8 ITA NO. 265/RPR /20 17 CHHATTISGARH STATE CRICKET SANGH SURPLUS OR DEFICIT COULD BE LARGE, BUT THEN THE SCALE OF OPERATIONS MAY BE A SCALE ON WHICH COMMERCIAL ACTIVITIES COULD BE CARRIED OUT BUT THAT FACT CANNOT CONVERT AN OBJECT OF GENERAL PUBLIC UTILITY INTO A COMMERCIAL ACTI VITY. WE HAVE CAREFULLY ANALYSED THE OBJECT S OF THE ASSESSEE, AND WE DO NOT FIND ANY OBJECTS, OTHER THAN OBJECT OF CRICKET, BEING PURS U ED BY THESE CRICKET ASSOCIATIONS. THE OBJECTS OF THESE CRICKET ASSOCIATIONS CLEARLY DEMONSTRATE THAT THESE CRICKET ASSOCI ATIONS EXIST AND OPERATE PURELY FOR THE PURPOSE OF PROMOTING CRICKET . T HEREFORE, IN OUR CONSIDERED VIEW THE PROVISO TO SECTION 2(15) CANNOT BE INVOKED IN THE CASE OF THE ASSESSEE. 9. WE FIND THAT IN THE CASE OF DCIT VS. TAMIL NADU CRICKET ASSOCIATION (SUPRA.) BEFORE THE CO - ORDINATE BENCH OF THE TRIBUNAL, CHENNAI, THE FACTS ARE THAT THE ASSESSEE SOCIETY WAS AFFILIATED TO BOARD OF CONTROL FOR CRICKET IN INDIA AND ASSESSEE DERIVES INCOME FROM SUBSCRIPTION, RENT FOR HIRI NG CRICKET GROUND, SPONSORSHIP, FEE FOR PROVIDING SERVICE TO IPL, INCOME FROM ADVERTISEMENT, SUBSIDY/SUBVENTION FROM BCCI SALE OF TICKETS FOR CONDUCTING MATCHES, RESTAURANT AND CATERING INCOME. ASSESSEE CLAIMED EXEMPTION U/S.11 OF THE ACT AND THE ASSESSING OFFICER DISALLOWED THE CLAIM OF THE ASSESSEE MAINLY ON THE GROUND THAT ACTIVITY OF THE ASSESSEE WAS COMMERCIAL IN NATURE. THE ASSESSING OFFICER ALSO FOUND THAT PROVISO TO SECTION 2(15) WOULD COME INTO OPERATION SINCE GROSS RECEIPTS OF ASSESSEE EXCEEDED PR ESCRIBED LIMIT AND THE LD. CIT(A) UPHELD THAT ORDER. THE CO - 9 ITA NO. 265/RPR /20 17 CHHATTISGARH STATE CRICKET SANGH ORDINATE BENCH OF THE TRIBUNAL, CHENNAI HAS HELD THAT ACTIVITY OF THE ASSESSEE COULD NOT BE CONSIDERED TO BE BUSINESS ACTIVITY. THE ASSESSEE WAS NOT PROVIDING ANY SERVICES TO ANY TRADE OR COMMERCE OR INDUSTRY. THEREFORE, THE PROVISO TO SECTION 2(15) WAS NOT APPLICABLE TO THE ASSESSEE AND THE ASSESSEE WAS ENTITLED FOR EXEMPTION U/S.11 OF THE ACT. IN THE PRESENT CASE ALSO, THE ASSESSEE IS RECEIVING MONEY FROM BCCI AS SUBSIDY FOR PROVIDING SERVICES IN THE IPL MATCHES, FOR CONDUCTING CRICKET MATCHES FOR HIRING GROUND ONLY TO PROMOTE THE CRICKET AND ENCOURAGING NEW TALENT IN THE FIELD OF CRICKET AND OBJECTS OF ALL THE OTHER CRICKET ASSOCIATIONS OF ANY OTHER STATE ARE SIMILAR IN NATURE . THEREFORE, THE A SSESSEE HAS NOT PROVIDED ANY SERVICES TO ANY TRADE, COMMERCE OR INDUSTRY AS DEFINED IN THE PROVISO TO SECTION 2(15) OF THE ACT. 10. THE HONBLE APEX COURT IN THE CASE OF CIT VS. GUJARAT MARITIME BOARD REPORTED (SUPRA.) HAS HELD THAT IF THE PRIMARY PURPOSE AND THE PREDOMINANT OBJECT IS FOR WELFARE OF GENERAL PUBLIC THEN THE PURPOSE WOULD BE CHARITABLE IN NATURE. 11. BEFORE US, THE LD. AR OF THE ASSESSEE ALSO SUBMITTED THAT PREDOMINANT OBJECT AND ACTIVITY OF ALL THE STATE ASSOCIATION AFFILIATED TO BCCI ARE ALMOST SIMILAR. ALMOST ALL THE STATE ASSOCIATIONS ARE ENJOYING BENEFIT OF 12A AND THE ASSESSEE IS DENIED OF THE SAME IN SPITE OF BEING 10 ITA NO. 265/RPR /20 17 CHHATTISGARH STATE CRICKET SANGH ENGAGED IN EXACTLY SAME ACTIVITY. THE LD. AR OF THE ASSESSEE HAS PLACED RELIANCE ON THE DECISION OF THE HONBLE BOMBAY HI GH COURT IN ITA NO.500 TO 504/NAG/2016 IN THE CASE OF TAX PRACTITIONER BENEVOLENT FUND VS. CIT REPORTED IN 266 ITR 561 WHEREIN IT WAS HELD THAT WHEN OBJECTS OF TWO INSTITUTIONS ARE SIMILAR THEN IT IS NOT OPEN TO THE INCOME TAX DEPARTMENT TO APPLY DIFFERENT PARAMETERS TO DIFFERENT TRUSTS CARRYING SIMILAR OBJECTS AND SIMILAR PURPOSES SEEKING GRANT OF EXEMPTION U/S.80G OF THE ACT. WE HAVE ALREADY ANALYZED THE OBJECTS OF THE TRUST VIS - A - VIS OTHER ASSOCIATIONS OF VARIOUS OTHER STATE UNDER BCCI SUPERVISION FOR PROMOTING CRICKET. WE HAVE ALSO EXAMINED THAT THE OBJECTS OF THE OTHER STATES ASSOCIATIONS ARE SIMILAR TO THAT OF THE ASSESSEE AND WHEN THOSE ASSOCIATIONS ARE ENJOYING THE BENEFIT OF 12A AND EXEMPTION U/S.80G OF THE ACT THEN THE ASSESSEE ON THE SIMILAR PA RAMETERS AND OBJECTS IS ENTITLED FOR REGISTRATION U/S.12AA OF THE ACT AND EXEMPTION U/S.80G OF THE ACT. MOREOVER, THE FACTS DEMONSTRATE THAT THIS IS NOT A PRIVATE TRUST FOR THE BENEFIT OF A SINGLE FAMILY BUT A SOCIETY IN WHICH ANY PERSON OF GENERAL PUBLIC OF ANY CAS T E, COMMUNITY OR CREED CAN BECOME THE MEMBER OF THE ASSESSEE SOCIETY WITHOUT ANY RESTRICTION. THE ASSESSEE SOCIETY RUNS THROUGH ITS MEMBERS. THE SOCIETY PERFORMS ALL THE FUNCTION ONLY THROUGH ITS MEMBERS. THE MEMBERS OF THE SOCIETY ARE FULLY DEDI CATED TO ACHIEVE THE 11 ITA NO. 265/RPR /20 17 CHHATTISGARH STATE CRICKET SANGH MAIN OBJECT OF THE SOCIETY. ALL THE OBJECTS OF THE SOCIETY ARE FOR THE PROMOTION OF CRICKET. SOCIETY HAS BEEN FORMED WITH THE LIKE - MINDED MEMBERS WHOSE AIM IS TO PROMOTE CRICKET SPORTS IN INDIA. THE OBJECT NOWHERE SPEAKS OR INTENDS TO PROVIDE ANY FINANCIAL ASSISTANCE TO ITS MEMBERS. 12. WE HAVE ALREADY EXAMINED THAT THE ASSESSEE IS NOT HIT BY THE PROVISO TO SECT ION 2(15) OF THE ACT SINCE IT DOES NOT CONDUCT ANY SERVICE OR ACTIVITIES WHICH ARE IN THE NATURE OF TRADE, COMMERCE OR BUSINE SS. ALL THE FACTS BEING EXAMINED VIS - - VIS TAKING INTO CONSIDERATION OF JUDICIAL PRONOUNCEMENT S PLACED BEFORE US AND EXAMINING OBJECT OF THE ASSESSEES SOCIETY PROVIDES THAT IT IS FOR CHARITABLE PURPOSE FOR ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY. THE HONBLE APEX COURT IN THE CASE OF CASE OF CIT VS. GUJARAT MARITIME BOARD (SUPRA.) HAS HELD THAT IF THE PRIMARY PURPOSE AND THE PREDOMINANT OBJECT IS FOR WELFARE OF GENERAL PUBLIC THEN THE PURPOSE WOULD BE CHARITABLE IN NATURE. 13. THE HONBL E SUPREME COURT OF INDIA IN THE CASE OF AHMEDABAD RANA CASTE ASSOCIATION VS. COMMISSIONER OF INCOME TAX (1971) 82 ITR 0704 WHEREIN IT HAS BEEN HELD THAT THE OBJECT OF THE TRUST MAY BE CHARITABLE IN NATURE AND AN OBJECT BENEFICIAL TO A SECTION OF PUBLIC IS AN OBJECT OF GENERAL PUBLIC UTILITY. THE SECTION OF PUBLIC MUST BE DEFINITE AND 12 ITA NO. 265/RPR /20 17 CHHATTISGARH STATE CRICKET SANGH IDENTIFIABLE AND IT IS NOT NECESSARY THAT THE OBJECT SHOULD BENEFIT THE WHOLE MANKIND. IN THE CASE OF THE ASSESSEE, SINCE IT IS FOR PROMOTION OF CRICKET, IT MAY NOT BE BENEFITING THE ENTIRE MANKIND BUT THOSE BEING BENEFI TED ARE DEFINITELY IDENTIFIABLE AND THEY ARE SECTIONS OF PUBLIC. 14. IN THE INSTANT CASE OF THE ASSESSEE, THE WORK OF THE ASSESSEE SOCIETY IS TO PROMOTE CRICKET SO AS TO BRING FORTH NEW TALENTS AND PROVI DE OPPORTUNITY TO THE PEOPLE FOR REPRESENTING THE STATE AS WELL AS THE COUNTRY. THEREFORE, THE OBJECT OF THE ASSESSEE IS FOR CHARITABLE PURPOSE AND NOTHING ELSE. IN VIEW OF THE MATTER AND AS PER THE AFORESAID DISCUSSION OF FACTS AND JUDICIAL PRONOUNCEMENTS , WE SET ASIDE THE ORDER OF THE LD. CIT(EXEMPTION) AND DIRECT THE LD. CIT(EXEMPTION) TO GRANT REGISTRATION U/S.12AA OF THE ACT TO THE ASSESSEE SOCIETY. 15. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRO NOUNCED ON 15 TH DAY OF MAY , 201 9 . SD/ - SD/ - MITHA LAL MEENA PARTHA SARATHI CHAUDHURY ACCOUNTANT MEMBER JUDICIAL MEMBER / RAIPUR ; / DATED : 15 TH MAY, 2019. SB 13 ITA NO. 265/RPR /20 17 CHHATTISGARH STATE CRICKET SANGH / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT (EXEMPTION), RAIPUR. 4. THE JCIT( EXEMPTION), RAIPUR. 5. , , , / DR, ITAT, RAIPUR BENCH, RAIPUR. 6. / GUARD FILE. // TRUE COPY // / BY ORDER, / PRIVATE SECRETARY , / ITAT, RAIPUR.