DCIT(E), Circle-1(1), New Delhi V. Delhi & District Circket Association, New Delhi

ITA 3058/DEL/2019

AI Insights

The case involves the Delhi & District Cricket Association (respondent) appealing against the decision of the Assessing Officer (AO) who denied them exemption under section 11 of the Income Tax Act for the assessment year 2015-16. The AO's decision was based on the association's commercial receipts from various sources such as sponsorship income, sale of liquor, and ticket sales. However, the CIT(A) reversed this decision, citing the restoration of the association's registration under section 12AA and previous tribunal orders that granted similar exemptions. The revenue challenged the CIT(A)'s decision, leading to this appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121947 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 24-04-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 07-04-2019
• Other Referred Cases: Delhi and District Cricket Association vs. DIT(E)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Benefit of exemption; Set aside
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B: NEW DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No.3058/Del/2019 Assessment Year: 2015-16 The DCIT 1(1), Exemption, New Delhi 110002 vs. M/s. Delhi & District Cricket Association Ferozshah Kotla Ground, Bahadur Shah Zafar Marg, New Delhi 110002 PAN AAATD 0828 P (Appellant) (Respondent) For Revenue : Ms. Maimun Alam, Sr. DR For Assessee : Shri Ved Jain, Adv. Shri Aman Garg, CA Date of Hearing : 25.04.2023 Date of Pronouncement : 09.06.2023 ORDER PER CHANDRA MOHAN GARG, J.M. This appeal has been filed against the order of CIT(A)-40, New Delhi dated 15.01.2019 for AY 2015-16. 2. The grounds raised by the revenue are as follows:- (i) On the facts & in the circumstances of the case and in law, Ld CIT (A) has erred in directing the AO to allow exemption us. 11 of the Act particularly when the assessee has shown receipts from Sponsorship Income, Sale of Liquor, Income from Corporate Boxes and Sale of Tickets which are purely commercial in nature. (ii) On the facts and in circumstances of the case and in law, Id CIT (A) has erred in treating Prior Period Expenses, Provisions for Gratuity and Leave Encashment as consequential to allowing exemption to the assessee ignoring the fact that such expenses are not incurred during the year and cannot be treated as application of income. (iii) On the facts and in circumstances of the case and in law, Ld CIT(A) has erred in deleting the addition made u/s 40(A) (3) of the Income Tax Act, such addition being consequential in nature to disallowance of benefit of exemption to the assessee. [2] ITA No.3058/Del/2019 3. The ld. Senior DR supporting the action of the Assessing Officer submitted that Ld CIT (A) has erred in directing the AO to allow exemption us. 11 of the Act particularly when the assessee has shown receipts from Sponsorship Income, Sale of Liquor, Income from Corporate Boxes and Sale of Tickets which are purely commercial in nature. He further submitted that, Id CIT (A) has erred in treating Prior Period Expenses, Provisions for Gratuity and Leave Encashment as consequential to allowing exemption to the assessee ignoring the fact that such expenses are not incurred during the year and cannot be treated as application of income. It is also submitted that Ld CIT(A) has erred in deleting the addition made u/s 40(A) (3) of the Income Tax Act, such addition being consequential in nature to disallowance of benefit of exemption to the assessee. The ld. Senior DR submitted that the ld. First Appellate Authority has granted relief to the assessee without any basis therefore impugned order may kindly be set aside by restoring that of the Assessing Officer. 4. The ld. counsel submitted brief synopsis which read as follows:- 1. This is an appeal preferred by the Revenue against the order of Id. CIT(A) dated 15.01.2019. 2. In the present case, AO has made the additions and denied the exemption claimed by the assessee on the basis of order dated 21.05.2012 passed by the DIT(E) withdrawing the registration under section 12A granted to the assessee and subsequent assessment orders passed for the AY 2009-10 to AY 2013-14 on the basis of that withdrawal order. (Page 2 Para 3) 3. The CIT(A) has deleted the additions and allowed the exemption on the ground that the registration granted to the assessee was subsequently restored by Hon'ble Tribunal bearing ITA No. 3095/Del/2012 dated 13.01.2015. He has also relied upon the judgement of ITAT Delhi for the AY 2009-10 bearing IT No. 5809/Del/2014 dated 23.06.2017 wherein the addition made by the AO were deleted and exemption claimed by the assessee was granted. 4. At the outset, it is submitted that the registration under section 12AA withdrawn by DIT(E) was subsequently restored by the Hon'ble ITAT vide order dated 13.01.2015 in ITA 3095/Del/2012 in Delhi and District Cricket Association vs. DIT(E) (PB Pg. 1-30). 5. After the passing the restoration order, the Hon'ble Tribunal also granted exemption to the assessee in the following assessment years: Assessment Year ITA No. Dated PB Pg. 2009-10 5809/Del/2014 23.06.2017 31-45 2010-11 361/Del/2016 19.09.2018 46-56 2011-12 2861/Del/2017 19.09.2019 57-61 2012-13 189/Del/2017 16.07.2019 62-73 2013-14 243/Del/2018 28.08.2020 74-78 [3] ITA No.3058/Del/2019 6. In the view of the above, the issue involved in this case is squarely covered by the judgments of Hon’ble Tribunal and CIT(A) has rightly deleted the additions made by the Assessing Officer. 5. On careful consideration of above submission from the relevant paras 4.1 to 4.6 of First Appellate Order we note that the ld. CIT(A), after considering the order of the Tribunal for AY 2009-10 available at pages 31-45 of first appellate order, has granted relief to the assessee by observing that the co-ordinate bench of Tribunal for AY 2009- 10 has directed the Assessing Officer to allow exemption u/s. 11 of the Act with all consequential benefits and relief. We also note that from the copies of the order of the Tribunal right from AY 2009-10 to 2013-14 it is clear that the after restoration of registration u/s. 12AA of the Act, by order of the Tribunal dated 13.01.2015 in ITA No. 3095/Del/2012 it has been consistently held that the assessee is entitle for exemption u/s. 11 of the Act and all consequential relief and benefits. The ld. Senior DR has not submitted any order controverting the above factual position of the Tribunal orders by submitting any order in favour of the revenue therefore we are inclined to hold that there is no ambiguity perversity or any valid reason to interfere with the findings and conclusion recorded by the ld. CIT(A) and thus, we uphold the same. Accordingly, grounds of revenue are dismissed. 6. In the result, the appeal of the revenue is dismissed. Order pronounced in the open court on 09.06.2023. Sd/- Sd/- (M. BALAGANESH) (CHANDRA MOHAN GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 09 th June, 2023. NV/- Copy forwarded to : 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR // By Order // Asstt. Registrar, ITAT, New Delhi