ACIT (E), New Delhi V. Delhi & District Cricket Association, New Delhi

ITA 2861/DEL/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5892 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 08-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation
• Section: 12; 11

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER & SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO.2861/DEL/2017 ASSESSMENT YEAR: 2011-12 ACI T(E), CIRCLE 1(1), NEW DELHI. VS DELHI & DISTRICT CRICKET ASSOCIATION, FEROZESHAH KOTLA GROUND, BAHADUR SHAH ZAFAR MARG, NEW DELHI. PAN: AAATD0828P (APPELLANT) (RESPONDENT) REVENUE BY : MS RACHNA SINGH , CIT DR ASSESSEE BY : SH. A SH ISH GO EL, CA MS SURBHI GOYAL, CA ORDER PER K. NARSIMHA CHARY, J.M. CHALLENGING THE ORDER DATED 3.2.2017 OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS)-40, NEW DELHI {FOR SHORT LEARNED CIT(A)} PASSED IN APPEAL NO.104/14-15, REVENUE PREFERRED THIS APPEAL . 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN ASSOCIATION ESTABLISHED TO ENCOURAGE AND PROMOTE THE GAME OF CRICKET IN THE PROVINCE OF DELHI AND DISTRICT OF KARNAL WHICH WAS REGISTERED UNDER SECTION 12 A OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT). THE REGISTRATION WAS, HOWEVER, WITHDRAWN W.E.F. 1.4.2009 FOR ASSESSMENT DATE OF HEARING : 3 .0 9 .2019 DATE OF PRONOUNCEMENT .09.2019 2 YEAR 2009-10 ONWARDS, TO BE RESTORED BY THE TRIBUNAL VIDE ORDER DATED 13.01.2015. 3. FOR ASSESSMENT YEAR 2011-12, THE ASSESSEE FILED THE RETURN OF INCOME ON 17.02.2012 DECLARING NIL INCOME BUT THE ASSESSING OFFICER DETERMINED INCOME OF THE ASSESSEE BY MAKING CERTAIN ADDITIONS ON ACCOUNT OF TV SPONSORSHIP FEE RECEIVED FROM BCCI, PRIOR PERIOD EXPENSES, DISALLOWANCE UNDER SECTION 40A (3) OF THE ACT, DEPRECIATION AS PER COMPANIES ACT ETC ON THE GROUND THAT THE ASSESSEE IS INVOLVED IN THE BUSINESS ACTIVITIES AS PER PROVISO 1 AND 2 OF SECTION 2(15) OF THE ACT BECAUSE THE ASSESSEE HAD RECEIVED SPONSORSHIP FEE, CASUAL MEMBERSHIP FEE, PERMANENT MEMBERSHIP FEE, RENT FROM THE GROUND, COLLECTION FROM THE HEALTH CLUB, TICKET SALE FROM PUBLIC AND CORPORATE HOUSES ETC. 4. AGGRIEVED BY THE SAME ASSESSEE PREFERRED AN APPEAL. LD. CIT(A) VIDE IMPUGNED ORDER, WHILE FOLLOWING THE DECISIONS OF THE TRIBUNAL FOR EARLIER YEARS AS WELL AS HIS OWN ORDERS FOR THE ASSESSMENT YEAR 2012-13, REACHED A CONCLUSION THAT THE ASSESSEE IS NOT CARRYING ON ACTIVITIES WITH ANY PROFIT MOTIVE OR WITH ANY SELF-INTEREST AND THE CONTRIBUTION RECEIVED BY WAY OF SPONSORSHIP, ADVISEMENT, SALE OF TICKETS ETC AND USER CHARGES ON THE FACTS OF THIS CASE, DO NOT CONVERT THE CHARITABLE ACTIVITY INTO TRADE, COMMERCE OR BUSINESS ACTIVITY AND CONSEQUENTLY DIRECTED THE ASSESSING OFFICER TO ALLOW EXEMPTION UNDER SECTION 11 TO THE ASSESSEE WITH ALL CONSEQUENTIAL BENEFITS. 5. CHALLENGING THE SAID FINDINGS OF THE LD. CIT(A), REVENUE PREFERRED THIS APPEAL CONTENDING THAT THE ASSESSEE HAD SHOWN RECEIPTS FROM SPONSORSHIP INCOME, SALE OF LIQUOR, INCOME FROM CORPORATE BOXES, SALE OF 3 TICKETS AND ADVERTISING/CONTRACTUAL RECEIPTS WHICH ARE PURELY COMMERCIAL IN NATURE AND, THEREFORE, THE IMPUGNED ORDER HAS TO BE QUASHED. 6. PER CONTRA, IT IS THE SUBMISSION OF THE LD. AR THAT WHILE PASSING THE IMPUGNED ORDER, LD. CIT(A) OBSERVED THAT FOR THE EARLIER YEARS HIS PREDECESSORS GRANTED RELIEF AND ALSO THE LD. CIT(A) FOLLOWED THE ORDERS OF THE TRIBUNAL FOR ASSESSMENT YEARS 2009-10, 2010-11 AND 2012-13. IT IS, THEREFORE, SUBMITTED THAT THE IMPUGNED ORDER CANNOT BE SAID TO BE EITHER ILLEGAL OR IMPROPER. 7. WE HAVE GONE THROUGH THE RECORD IN THE LIGHT OF THE SUBMISSIONS MADE ON EITHER SIDE. WE HAVE ALSO GONE THROUGH THE ORDERS DATED 13.01.2015 IN ITA NO.1395/DEL/ 2012 PASSED BY A COORDINATE BENCH OF THIS TRIBUNAL RESTORING THE REGISTRATION OF THE ASSESSEE UNDER SECTION 12 A OF THE ACT. WE HAVE GONE THROUGH THE ORDER DATED 23.6.2017 IN ITA NO.5809/DEL/ 2014 FOR ASSESSMENT YEAR 2009-10, ORDER DATED 19.9.2018 IN ITA NO.361/DEL/ 2016 FOR ASSESSMENT YEAR 2010-11 AND ORDER DATED 16.7.2019 IN ITA NO.189/DEL/ 2017 FOR ASSESSMENT YEAR 2012-13 WHEREUNDER, ON IDENTICAL SET OF FACTS AND CIRCUMSTANCES, COORDINATE BENCHES OF THIS TRIBUNAL CONSIDERED THE CASE OF THE ASSESSEE AND HELD THAT THE ASSESSEE IS ENTITLED TO THE BENEFITS OF SECTION 11 AND 12 OF THE ACT. 8. IT IS NOT THE CASE OF THE REVENUE THAT THERE IS ANY CHANGE IN THE FACTS RELATING TO THE ASSESSEE ALL THROUGH THESE YEARS SO THAT A DIFFERENT VIEW HAS TO BE TAKEN FOR THIS YEAR.WE, THEREFORE, WHILE RESPECTFULLY FOLLOWING THE CONSISTENT VIEW TAKEN BY THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEARS 2009-10, 2010-11 AND 2012-13 AS REFERRED 4 TO ABOVE, HOLD THAT THE ASSESSEE IS ENTITLED TO THE BENEFITS UNDER SECTION 2011-12 OF THE ACT AND CONSEQUENTLY WOULD NOT FIND ANY ILLEGALITY OR IRREGULARITY IN THE IMPUGNED ORDER PASSED BY THE LD. CIT(A). CONSEQUENTLY, WE FIND THE GROUNDS OF APPEAL AS DEVOID OF MERITS AND DISMISSED THE SAME. 10. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH SEPTEMBER, 2019. SD/- SD/- (ANADEE NATH MISSHRA) (K. NARASIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 19 TH SEPTEMBER, 2019 VJ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 5 DATE OF DICTATION 5.9.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 5.9.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER