DCIT, CHENNAI V. M/s. Tamil Nadu Cricket Association, CHENNAI

ITA 401/CHNY/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4570 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-05-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 18-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S BHARATH
• Assessee Lawyers: V RA VICHANDRAN
• Keywords: Charitable institution; Set aside
• Section: 12AA; 11

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , . !' , $ % BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.401/CHNY/2019 ' (' / ASSESSMENT YEAR : 2013-14 THE DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHENNAI CIRCLE, CHENNAI - 600 034. V. M/S TAMILNADU CRICKET ASSOCIATION, NO.5, M.A. CHIDAMBARAM STADIUM, HOSTEL ROAD, CHEPAUK, CHENNAI - 600 005. PAN : AAAAT 0398 M (*+/ APPELLANT) (,-*+/ RESPONDENT) *+ . / / APPELLANT BY : SHRI S. BHARATH, CIT ,-*+ . / / RESPONDENT BY : SHRI V. RAVICHANDRAN, CA 0 . 1$ / DATE OF HEARING : 09.05.2019 2!( . 1$ / DATE OF PRONOUNCEMENT : 24.05.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -17, CHENN AI, DATED 28.11.2018 AND PERTAINS TO ASSESSMENT YEAR 2013-14. 2. SHRI S. BHARATH, THE LD. DEPARTMENTAL REPRESENTA TIVE, SUBMITTED THAT THE ASSESSEE-ASSOCIATION CLAIMED EXE MPTION UNDER 2 I.T.A. NO.401/CHNY/19 SECTION 11 OF THE INCOME-TAX ACT, 1961 (IN SHORT 'T HE ACT'). THE LD. D.R. CLARIFIED THAT THE ASSESSEE-ASSOCIATION WAS RE GISTERED UNDER SECTION 12AA OF THE ACT. ACCORDING TO THE LD. D.R. , AS PER THE STATEMENT OF INCOME & EXPENDITURE, IT IS OBVIOUS TH AT THE ASSESSEE HAS RECEIVED INCOME FROM SUBSCRIPTION, RENT FOR HIR ING CRICKET GROUND, FEE FOR PROVIDING SERVICE TO IPL, INCOME FR OM ADVERTISEMENT, SUBSIDY FROM BCCI, SALE OF TICKETS FOR CONDUCTING M ATCHES, RESTAURANT AND CATERING INCOME, ETC. THESE ACTIVIT IES ARE IN THE NATURE OF TRADE OR COMMERCE. THEREFORE, ACCORDING TO THE LD. D.R., IN VIEW OF PROVISO TO SECTION 2(15) OF THE ACT, THE ASSESSEE IS NOT ENTITLED FOR EXEMPTION UNDER SECTION 11 OF THE ACT. HOWEVER, ON APPEAL BY THE ASSESSEE, ACCORDING TO THE LD. D.R., THE CIT(APPEALS) BY PLACING RELIANCE ON THE ORDER OF TH IS TRIBUNAL IN THE ASSESSEE'S OWN CASE FOR ASSESSMENT YEAR 2011-12 AND 2012-13 IN I.T.A. NO.2556 & 2557/MDS/2016 DATED 31.05.2017, AL LOWED THE CLAIM OF THE ASSESSEE. THE LD. D.R. FURTHER SUBMIT TED THAT THE DEPARTMENT HAS ALREADY FILED APPEAL AGAINST THE ORD ER OF THIS TRIBUNAL IN THE ASSESSEE'S OWN CASE FOR ASSESSMENT YEARS 2011-12 AND 2012-13. ACCORDING TO THE LD. D.R., THE CIT(AP PEALS) OUGHT TO HAVE FOLLOWED PANAJI BENCH OF THIS TRIBUNAL IN ENTE RTAINMENT SOCIETY OF GOA V. CIT (2013) 34 TAXMANN.COM 210. 3 I.T.A. NO.401/CHNY/19 3. ON THE CONTRARY, SHRI V. RAVICHANDRAN, THE LD. REPRESENTATIVE FOR THE ASSESSEE, SUBMITTED THAT THI S TRIBUNAL EXAMINED THE NATURE OF THE INCOME FOR THE ASSESSMEN T YEARS 2011- 12 AND 2012-13 IN I.T.A. NO.2556 & 2557/MDS/2016 DA TED 31.05.2017 AND FOUND THAT THE ASSESSEE IS NOT DOING ANY BUSINESS ACTIVITY. ACCORDING TO THE LD. REPRESENTATIVE, IT WAS ALSO FOUND THAT THE ASSESSEE IS NOT PROVIDING ANY SERVICE TO ANY TR ADE, COMMERCE OR INDUSTRY. ACCORDINGLY, THIS TRIBUNAL FOUND THAT PR OVISIONS OF SECTION 2(15) OF THE ACT IS NOT APPLICABLE TO THE ASSESSEE. IN FACT, ACCORDING TO THE LD. REPRESENTATIVE, FOR THE ASSESSMENT YEARS 2011-12 AND 2012-13, THIS TRIBUNAL PLACED ITS RELIANCE IN THE A SSESSEE'S OWN CASE FOR ASSESSMENT YEARS 2008-09 TO 2010-11. THER EFORE, ACCORDING TO THE LD. REPRESENTATIVE, THIS TRIBUNAL CONSISTENTLY HELD THAT THE INCOME GENERATED BY THE ASSESSEE IN THE VE RY SAME SOURCE IS NOT FROM ANY BUSINESS ACTIVITY OR ANY SERVICE TO THE TRADE. SINCE THE CIT(APPEALS) HAS PLACED HIS RELIANCE ON THE ORD ER OF THIS TRIBUNAL IN THE ASSESSEE'S OWN CASE, ACCORDING TO T HE LD. REPRESENTATIVE, NO INTERFERENCE IS CALLED FOR. 4. PLACING RELIANCE ON THE ORDER OF THE AHMEDABAD B ENCH OF THIS TRIBUNAL IN GUJARAT CRICKET ASSOCIATION V. JCI T (EXEMPTIONS) 4 I.T.A. NO.401/CHNY/19 (2019) 101 TAXMANN.COM 453, THE LD. REPRESENTATIVE FOR THE ASSESSEE SUBMITTED THAT THE AHMEDABAD BENCH EXAMINE D AN IDENTICAL ISSUE AND AFTER REFERRING TO THE ORDER OF THIS BENCH OF THE TRIBUNAL IN THE ASSESSEE'S OWN CASE, FOUND THAT THE OBJECT OF CRICKET ASSOCIATION CLEARLY DEMONSTRATES THAT SUCH ASSOCIAT IONS EXIST AND OPERATE PURELY FOR PROMOTING CRICKET. THEREFORE, A CCORDING TO THE LD. REPRESENTATIVE, THE ASSESSING OFFICER HAS WRONG LY INVOKED THE PROVISIONS OF SECTION 2(15) OF THE ACT. IN VIEW OF THE ABOVE DECISION OF THE AHMEDABAD BENCH OF THIS TRIBUNAL, ACCORDING TO THE LD. REPRESENTATIVE, THE DECISION OF PANAJI BENCH IN ENT ERTAINMENT SOCIETY OF GOA (SUPRA) MAY NOT BE APPLICABLE TO THE FACTS OF THE CASE. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IT IS NOT IN DISPUTE THAT THE ASSESSEE RECEIVED INCOME FROM SUBS CRIPTION, SALE OF TICKETS, INCOME FROM ADVERTISEMENT, SUBSIDY FROM BCCI, INCOME FROM RESTAURANT AND CATERING, FEES FOR PROVIDING SE RVICE TO IPL. THE QUESTION ARISES FOR CONSIDERATION IS WHEN THE ASSES SEE ITSELF WAS ESTABLISHED FOR THE PURPOSE OF PROMOTING CRICKET IN THE STATE, CAN WE SAY THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS AC TIVITY OR 5 I.T.A. NO.401/CHNY/19 PROVIDING SERVICE TO THE TRADE? THIS ISSUE WAS EXA MINED ELABORATELY BY THIS TRIBUNAL IN THE ASSESSEE'S OWN CASE FOR ASSESSMENT YEARS 2008-09 TO 2010-11. AFTER CONSIDE RING THE NATURE OF INCOME, THIS TRIBUNAL OBSERVED AS FOLLOWS AT PAR AGRAPHS 14, 15 & 16 IN I.T.A. NOS.1535, 1536 & 1537/MDS/2014:- 14. THE NEXT CONTENTION OF THE LD. D.R. THAT THE AS SESSEE IS ENGAGED IN BUSINESS ACTIVITY. WE HAVE CAREFULLYGON E THROUGH THE PROVISIONS OF SECTION 2(15) OF THE ACT AND THE CIRCULAR ISSUED BY THE CBDT. IN FACT, THE ASSESSEE HAS FILE D A COPY OF THE SAID CIRCULAR AT PAGE 1 OF ITS PAPER-BOOK. FOR THE PURPOSE OF CONVENIENCE, WE ARE REPRODUCING SECTION 2(15) OF THE ACT HEREUNDER:- 2(15) CHARITABLE PURPOSE INCLUDES RELIEF OF THE POOR, EDUCATION, MEDICAL RELIEF, 79[PRESERVATION OF ENVIRONMENT (INCLUDING WATERSHEDS, FORESTS AND WILDLIFE) AND PRESERVATION OF MONUMENTS OR PLACES O R OBJECTS OF ARTISTIC OR HISTORIC INTEREST,] AND THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY : PROVIDED THAT THE ADVANCEMENT OF ANY OTHER OBJECT O F GENERAL PUBLIC UTILITY SHALL NOT BE A CHARITABLE PU RPOSE, IF IT INVOLVES THE CARRYING ON OF ANY ACTIVITY IN T HE NATURE OF TRADE, COMMERCE OR BUSINESS, OR ANY ACTIV ITY OF RENDERING ANY SERVICE IN RELATION TO ANY TRADE, COMMERCE OR BUSINESS, FOR A CESS OR FEE OR ANY OTHE R CONSIDERATION, IRRESPECTIVE OF THE NATURE OF USE OR APPLICATION, OR RETENTION, OF THE INCOME FROM SUCH ACTIVITY ; PROVIDED FURTHER THAT THE FIRST PROVISO SHALL NOT A PPLY IF THE AGGREGATE VALUE OF THE RECEIPTS FROM THE ACTIVITIES REFERRED TO THEREIN IS TWENTY-FIVE LAKH RUPEES OR LESS IN THE PREVIOUS YEAR ; 6 I.T.A. NO.401/CHNY/19 ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC U TILITY IS ALSO ONE OF THE CHARITABLE PURPOSES INCLUDED IN SEC TION 2(15) OF THE ACT. HOWEVER, PROVISO TO SECTION 2(15) OF T HE ACT CLARIFIES THAT IF THE ASSESSEE INVOLVES IN CARRYING ON ANY ACTIVITY IN THE NATURE OF TRADE, COMMERCE OR BUSINE SS, OR RENDERING ANY ACTIVITY IN RELATION TO TRADE, COMMER CE OR BUSINESS, THE SAME SHALL NOT BE TREATED AS CHARITAB LE PURPOSE. THE QUESTION ARISES FOR CONSIDERATION IS WHETHER TH E ASSESSEE INVOLVES ITSELF IN ANY ACTIVITY IN THE NATURE OF TR ADE, COMMERCE OR BUSINESS OR ITS ACTIVITY WOULD AMOUNT TO RENDERI NG ANY SERVICE IN RELATION TO TRADE, COMMERCE OR BUSINESS. WE HAVE CAREFULLY GONE THROUGH THE OBJECT OF THE ASSESSEE-S OCIETY, A COPY OF WHICH IS AVAILABLE AT PAGES 62 TO 65 OF THE PAPER- BOOK. FOR THE PURPOSE OF CONVENIENCE, WE ARE REPRO DUCING THE OBJECT:- (A) TO TAKE OVER ON REGISTRATION UNDER THE SOCIETIE S REGISTRATION ACT XXI OF 1860 AND ASSUME THE AFFAIRS AN D ACTIVITIES OF THE MADRAS CRICKET ASSOCIATION, AS SU BSEQUENTLY APPELLATED AS TAMIL NADU CRICKET ASSOCIATION AND CO NTINUE AND TAKE OVER THE DUES TO AND ASSETS, LIABILITIES, COMM ITMENTS AND UNDERTAKINGS OF THE SAID MADRAS CRICKET ASSOCIATION . (B) TO MAINTAIN A GENERAL CONTROL OF THE GAME OF CR ICKET IN THE STATE AND THE UNION TERRITORY OF PONDICHERRY AND GI VE ITS DECISION ON ALL MATTERS CONCERNING THE SAME EITHER WHEN REFERRED TO OR SUO MOTO. THE ACTIVITIES WOULD BE CO NFINED TO INDIA. (C) TO SPREAD THE GAME THROUGHOUT THE STATE BY ORGA NIZING TOURNAMENTS, INCLUDING INTER-UNIVERSITY, INTER-SCHO OL AND INTER-ASSOCIATION MATCHES, TO EDUCATE YOUN SPORTSME N IN THE GAME GENERALLY AND ALSO IN THE FIELD OF PHYSICAL CU LTURE AND THE SPIRIT OF SPORTSMANSHIP. THE BENEFITS WOULD BE AVA ILABLE TO THE GENERAL PUBLIC IRRESPECTIVE OF CASTE, CREED, RE LIGION OR SEX. (D) TO MAINTAIN A LIBRARY OF BOOKS, PUBLICATIONS A ND PERIODICALS OF INTEREST OF SPORTSMEN AND TO DIFUSE KNOWLEDGE OF CRICKET AND ITS IDEALS OF SPORTSMANSHIP. 7 I.T.A. NO.401/CHNY/19 (E) TO COMMUNICATE WITH PUBLIC AUTHORITIES AND VARI OUS SPORTS ORGANIZATIONS IN INDIA AND ABROAD AND CONCERT AND P ROMOTE MEASURES FOR THE DEVELOPMENT OF THE GAME AND TO PRO VIDE SOCIAL SECURITY SAFE GUARDS FOR THE P1AYERS, OFFICI ALS SUCH AS MANAGERS, COACHES, UMPIRES,, SELECTORS AND OTHERS W HO ARE DIRECTLY CONNECTED WITH THE GAME. (F) TO PROVIDE, ACQUIRE AND MAINTAIN SUITABLE PLACE S, PLAY- GROUNDS, BUILDINGS AND CLUB HOUSES TO AFFORD REQUIR ED FACILITIES FOR THE CRICKETERS, OFFICIALS SUCH AS MANAGERS, COA CHES, UMPIRES, SELECTORS AND OTHERS WHO ARE DIRECTLY CONN ECTED WITH THE GAME, MEMBERS TO ACQUIRE BY PURCHASE, LEAS E, HIRE OR OTHERWISE SUITABLE PLAYGROUNDS, STADIA AND ANY OTHE R PROPERTY, MOVABLE AND IMMOVABLE, RIGHTS OR PRIVILEGES TO THE SAME AND TO PROVIDE ALL AMENITIES THEREON FOR THE PROMOTION OF THE OBJECTS OF THE ASSOCIATION. (G) TO LAY OUR ANY GROUND FOR PLAYING THE GAME AND FOR OTHER PURPOSES AND TO PROVIDE PAVILION, CANTEEN AND OTHER CONVENIENCES AND AMENITIES IN CONNECTION THEREWITH AND FOR SUCH PURPOSE PURCHASE, LEASE OR OTHERWISE ACQUIRE T HE LAND AT SUCH PRICE OR RENT FOR SUCH PERIOD AND UPON SUCH TE RMS AND CONDITIONS AS MAY SEEM EXPEDIENT. (H) TO ESTABLISH PROMOTE OR ASSIST IN ESTABLISHING AND PROMOTING AND TO SUBSCRIBE TO AND BECOME A MEMBER O F ANY OTHER ASSOCIATION OR CLUB WHETHER INCORPORATED OR N OT WHOSE OBJECTS ARE SIMILAR OR IN PART TO THE OBJECTS OF TH E ASSOCIATION, THE ESTABLISHMENT OR PROMOTION OF WHIC H MAY BE BENEFICIAL TO THE ASSOCIATION AND IN PARTICULAR TO SUBSCRIBE TO, FINANCE, GIVE OR LEND MONEY TO, AND GUARANTEE THE C ONTRACTS OF THE BOARD OF CONTROL FOR CRICKET IN INDIA OR ANY OTH ER BODY FOR THE TIME BEING CONTROLLING THE GAME IN INDIA OR ANY PART THEREOF AND ANY STATE OR REGIONAL ASSOCIATION RECOG NIZED BY SUCH BODY. (I) TO CREATE, FOSTER AND MAINTAIN FRIENDLY RELATIO NS WITH AND AMONG THE POPULATION OF THE AREA UNDER ITS CONTROL THROUGH SPORTS, TOURNAMENTS AND COMPETITIONS CONNECTED THER EWITH, TO 8 I.T.A. NO.401/CHNY/19 CREATE, DEVELOP AND FOSTER A HEALTHY SPIRIT OF SPOR TSMANSHIP AND A BROAD AND GENEROUS OUTLOOK DEVOID OF ALL PREJ UDICES AND TO MOULD THE CHARACTER OF CITIZEN THROUGH THE MEDIU M OF SPORTS IN GENERAL AND CRICKET IN PARTICULAR. (J) TO IMPART PHYSICAL EDUCATION THROUGH THE MEDIUM OF CRICKET AND TAKE ALL STEPS TO ASSIST THE CITIZENS TO DEVELO P THEIR PHYSIQUE AND HAVE A HEALTHY MIND AND HEALTHY BODY. (K) TO SPREAD THE IDEALS OF CRICKET AND ALL THAT IT STANDS FOR THROUGHOUT THE LENGTH AND BREADTH OF ITS AREA BY AR RANGING SCHOOLS FOR COACHING, LECTURES, TOURNAMENTS AND RUN INTERNATIONAL MATCHES BETWEEN INDIA AND OTHER LEADI NG FOREIGN COUNTRIES SO AS TO DEVELOP MUTUAL GOODWILL AND BETT ER UNDERSTANDING BETWEEN INDIA AND OTHER COUNTRIES. (L) . . .. .. .. .. .. .. .. . TIME TO RUN SUCH MATCHES FOR THE ACHIEVEMENT OF THE OBJECTS OF THE ASSOCIATION AND TO UTILIZE THE NET PROCEEDS THEREOF TOWARDS THE IMPLEMENTATION OF THE OBJECTS SET OUT H EREIN AND TO EDUCAT THE PUBLIC, THE SCHOOL BOYS, COLLEGE STUD ENTS, CLUBS AND CRICKETERS, IN CRICKET AND ALL THE IDEALS IT ST ANDS FOR. (M) TO HAVE AS MANY CLASSES OF MEMBERS WITH SUCH RI GHTS AS THE GENERAL BODY DECIDE. (N) TO INSTILL KEENNESS FOR THE GAME AND TO FOSTER THE SPIRIT OF SPORTSMANSHIP IN PROMISING STUDENTS OF SCHOOLS AND COLLEGES AND MEMBERS OF AFFILIATED CLUBS / DISTRICT ASSOCIAT IONS AND INSTITUTIONS AND THUS ENABLE THEM TO DEVELOP A GOOD PHYSIQUE AND A GOOD STANDARD OF THE GAME AND TO AFFORD FACIL ITIES TO THE POORER CLASSES OF CITIZENS TO ATTAIN EFFICIENCY IN THE GAME. (O) TO REGULATE AND CONTROL SPORTS IN GENERAL AND T HE GAME OF CRICKET IN PARTICULAR. (P) TO GIVE DECISIONS ON THE RELEVANT MATTERS REFER RD TO THE ASSOCIATION BY AFFILIATED CLUBS/DISTRICT ASSOCIATIO NS AND INSTITUTIONS AND, IF NECESSARY, TO FINANCE AND COND UCT MATCHES 9 I.T.A. NO.401/CHNY/19 AND TOURS OF REPRESENTATIVE TEAMS VISITING ITS AREA ON INVITATION AND TO REGULATE AND CONTROL THE VISITS O F THE STATES REPRESENTATIVE TEAMS GOING OUT OF TAMIL NADU. (Q) TO ENCOURAGE THE FORMATION OF ZONES IN THE CITY OF MADRAS AND DISTRICT OR REGIONAL CLUBS IN EVERY DISTRICT OR PART OF A DISTRICT AND PLAYING FACILITIES IN ALL SUCH CENTRES . (R) TO SELECT TEAMS TO REPRESENT THE ASSOCIATION IN TOURNAMENTS, CHAMPIONSHIPS OR FIXTURES, LOCAL OR OTH ERWISE. (S) TO ACQUIRE BY ALL LAWFUL MEANS OF MOVABLE AND I MMOVABLE PROPERTY ON BEHALF OF THE ASSOCIATION AND TO SELL, MANAGE, MORTGAGE LEASE AND EXCHANGE, DISPOSE OFF OR OTHERWIS E DEAL WITH ALL OR ANY OF ITS PROPERTIES AND/OR ANY INCOME THEREFROM. (T) TO PROMOTE AND TO CONTRIBUTE TO ANY ENTERPRISE CONDUCTED BY INDIVIDUALS OR ASSOCIATIONS IN CONFORMITY WITH T HE OBJECTS OF THE ASSOCIATION. (U) TO ORGANIZE A PROPER COACHING SCHEME FOR THE BE NEFIT OF CRICKETERS IN THE CITY AND IN THE DISTRICTS UNDER T HE SUPERVISION OF COACHES FROM INDIA AND ABROAD. (V) TO COLLECT FUNDS AND WHENEVER NECESSARY BORROW WITH OR WITHOUT SECURITY FOR PURPOSES OF THE ASSOCIATION AN D IN PARTICULAR BY THE ISSUE OF DEBENTURES OR DEBENTURE STOCK PERPETUAL OR OTHERWISE CHARGED UPON ALL OR ANY OF T HE ASSOCIATIONS PROPERTY BOTH OR FUTURE AND TO PURCHA SE, REDEEM OR PAYOFF ANY SUCH SECURITIES AND TO UTILIZE SUCH F UNDS IN SUCH MANNER AS THE GENERAL BODY MAY CONSIDER DESIRABLE FO R THE FULFILLMENT OF THE OBJECTS OF THE ASSOCIATION. (W) TO INVEST MONIES AND FUNDS OF THE ASSOCIATION A S PER SECTION 11(5) OF THE INCOME-TAX ACT, 1961 AND TO RECON VERT IN SUCH MANNER AS MAY BE DECIDED UPON BY THE GENERAL BO DY OF THE MEMBERS OF THE ASSOCIATION FROM TIME TO TIME. 10 I.T.A. NO.401/CHNY/19 (X) TO CARRY OUT ANY OTHER BUSINESS OR ACTIVITY WHIC H MAY SEEM TO THE COMMITTEE CAPABLE OF BEING CONVENIENTLY CARR IED OUT IN CONNECTION WITH AND IN CONFORMITY TO THE OBJECTS OF THE ASSOCIATION AND WHICH IS CONNECTED DIRECTLY OR INDI RECTLY TO ENHANCE THE VALUE OF OR RENDER MORE PROFITABLE ANY OF THE OBJECTS, RIGHTS OR PROPERTIES OF THE ASSOCIATION. (Y) TO MAINTAIN A PANEL OF APPROVED CRICKET UMPIRES AND TO DO SUCH ACTS AS MAY BE NECESSARY FOR THIS PURPOSE INCL UDING HOLDING OF PRESCRIBED PERIODICAL TESTS WITH A VIEW TO ENABLE THEM TO QUALIFY THEMSELVES AS FIRST CLASS UMPIRES. (Z) TO ADD, DELETE, ALTER, MAINTAIN AND ENFORCE RUL ES AND REGULATIONS FOR THE CONTROL AND GOVERNANCE OF THE G AME IN THE STATE OF TAMIL NADU AND THE UNION TERRITORY OF POND ICHERRY AND TO MAINTAIN DISCIPLINE AMONGST PLAYERS, OFFICIA LS, CLUBS AND AFFILIATED INSTITUTIONS. THE OBJECT OF THE ASSESSEE-SOCIETY IS TO CONTROL GA ME OF CRICKET IN THE STATE OF TAMIL NADU AND IN THE UNION TERRITO RY OF PUDUCHERRY AND ALSO TO ORGANIZE TOURNAMENTS, INCLUD ING INTER- UNIVERSITY, INTER-SCHOOL AND INTER-ASSOCIATION MATC HES, TO EDUCATE YOUNG SPORTSMEN IN THE GAME GENERALLY AND A LSO IN THE FIELD OF PHYSICAL CULTURE AND THE SPIRIT OF SPORTSM ANSHIP. THEREFORE, THE SOLE OBJECT OF THE ASSESSEE-SOCIETY IS TO PROMOTE SPORT OF CRICKET IN THE STATE OF TAMIL NADU AND IN THE UNION TERRITORY OF PUDUCHERRY. 15. NOW, LETS EXAMINE WHETHER THE ACTIVITY OF COND UCTING ONE-DAY MATCHES, T-20 MATCHES AND INDIAN PREMIER LE AGUE MATCHES WOULD AMOUNT TO DOING BUSINESS OR TRADE. I T IS THE CASE OF THE REVENUE THAT THE ASSESSEE-SOCIETY IS CONDUCT ING OR ORGANIZING T-20, ONE-DAY MATCHES OR INDIAN PREMIER LEAGUE MATCHES. IN FACT, BCCI, THE PARENT ORGANIZATION WH ICH IS A NATIONAL BODY IN INDIA, IS ORGANIZING AND CONDUCTIN G THE MATCHES. THE ASSESSEE-SOCIETY, BEING A MEMBER OF B CCI, HOSTS THE MATCHES WHICH ARE CONDUCTED BY BCCI. FOR THE P URPOSE OF MEETING ITS EXPENDITURE, THE BCCI ALLOCATES FUNDS F ROM THE REVENUE IT COLLECTED FROM ADVERTISEMENT AND OTHER S OURCES. THE ASSESSEE-SOCIETY IS ALLOWED TO SELL TICKETS TO THE CRICKET VIEWERS. NO DOUBT, THE PLAYERS OF INDIAN PREMIER LEAGUE ARE SOLD IN PUBLIC AUCTION FOR VERY HUGE AMOUNT. BUT THE QUESTION IS WHO IS CONDUCTING AND WHO IS AUCTIONING, WHETHER THE ASSES SEE-SOCIETY 11 I.T.A. NO.401/CHNY/19 OR BCCI? IN FACT, BCCI CONDUCTS THE PUBLIC AUCTION FOR SELLING PREMIER PLAYERS AT A HUGE PREMIUM RATE. IN FACT, T HE BCCI COLLECTS THE MONEY. THE ROLE OF THE ASSESSEE-SOCIE TY IS ONLY TO PROVIDE STADIUM FOR CONDUCTING MATCHES. OTHER THAN THAT, THE ASSESSEE-SOCIETY HAS NO ROLE IN CONDUCTING THE INTE RNATIONAL MATCHES AND INDIAN PREMIER LEAGUE MATCHES. 16. THE OTHER ACTIVITY OF THE ASSESSEE-SOCIETY IS T O CONDUCT TRAINING PROGRAMMES, COACHING CLASSES FOR COLLEGE S TUDENTS AT DISTRICT LEVEL IN THE STATE OF TAMIL NADU AND IN TH E UNION TERRITORY OF PUDUCHERRY. THE ASSESSEE IS ALSO COND UCTING INTER- UNIVERSITY, INTER-SCHOOL AND INTER-ASSOCIATION MATC HES. EXPENDITURES INVOLVED IN SUCH ACTIVITIES WERE MET O UT OF SURPLUS FUNDS REMAINING WITH THE ASSESSEE-SOCIETY. THE ASS ESSING OFFICER GOT CONFUSED HIMSELF WITH THE ACTIVITY CARR IED ON BY THE BCCI AS THAT OF THE ACTIVITY CARRIED ON BY THE ASSE SSEE-SOCIETY. THE MATERIAL AVAILABLE ON RECORD SHOWS THAT ONE-DAY MATCHES, T-20 MATCHES AND INDIAN PREMIER LEAGUE MATCHES ARE ALL CONDUCTED BY THE BCCI AND THE ASSESSEE, BEING THE H OST IN THE STATE OF TAMIL NADU, IS ONLY PROVIDING ITS STADIUM. THE ASSESSEE HAS ALSO RECEIVED FUNDS FROM BCCI FOR MEETING THE E XPENDITURE, BEING THE HOST. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT AT ANY STRETCH OF IMAGINATION, IT CANN OT BE SAID THAT THE ASSESSEE IS CONDUCTING ANY BUSINESS ACTIVITY. THE ASSESSEE IS ALSO NOT PROVIDING ANY SERVICE TO ANY TRADE, COM MERCE OR INDUSTRY. IN THOSE CIRCUMSTANCES, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT PROVISO TO SECTION 2(15) OF THE ACT IS NOT APPLICABLE TO THE ASSESSEE. IN VIEW OF THE ABOVE D ISCUSSION, THE ASSESSEE IS ELIGIBLE FOR EXEMPTION UNDER SECTION 11 OF THE ACT FOR ALL THE ASSESSMENT YEARS UNDER CONSIDERATION. ACC ORDINGLY, THE ORDERS OF THE LOWER AUTHORITIES FOR ASSESSMENT YEAR S 2009-10 AND 2010-11ARE SET ASIDE AND THE ASSESSING OFFICER IS DIRECTED TO GRANT EXEMPTION UNDER SECTION 11 OF THE ACT. T HE ASSESSING OFFICER IS ALSO DIRECTED TO GRANT EXEMPTION UNDER S ECTION 11 OF THE ACT FOR THE ASSESSMENT YEAR 2008-09 ALSO. 6. THE ORDER OF THIS TRIBUNAL FOR ASSESSMENT YEARS 2008-09 TO 2010-11 WAS SUBSEQUENTLY FOLLOWED FOR THE ASSESSMEN T YEARS 2011- 12 AND 2012-13. THE ASSESSMENT YEAR UNDER CONSIDER ATION IS 2013-14. THEREFORE, THIS TRIBUNAL IS OF THE CONSID ERED OPINION THAT 12 I.T.A. NO.401/CHNY/19 THE CIT(APPEALS) HAS RIGHTLY FOLLOWED THE ORDER OF THIS TRIBUNAL AND ALLOWED EXEMPTION UNDER SECTION 11 OF THE ACT. A M ERE PENDENCY OF APPEAL FILED BY THE DEPARTMENT BEFORE THE HIGH C OURT AGAINST THE ORDER OF THIS TRIBUNAL CANNOT BE A GROUND TO TAKE A DIFFERENT VIEW. 7. IT IS ALSO PERTINENT TO NOTE THAT THE AHMEDABAD BENCH OF THIS TRIBUNAL AFTER REFERRING TO THE ORDER OF THIS TRIBU NAL IN THE ASSESSEE'S OWN CASE FOR ASSESSMENT YEARS 2008-09 TO 2010-11 IN I.T.A. NO.1535, 1536 & 1537/MDS/2014, FOUND THAT THE ASSES SING OFFICER HAS WRONGLY INVOKED THE PROVISIONS OF SECTION 2(15) OF THE ACT. IN VIEW OF THE ABOVE, THIS TRIBUNAL DO NOT FIND ANY RE ASON TO INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY AND ACCORDING LY THE SAME IS CONFIRMED. 8. IN THE RESULT, THE APPEAL FILED BY THE REVENUE S TANDS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 24 TH MAY, 2019 AT CHENNAI. SD/- SD/- (. !' ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESA N) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 4 /DATED, THE 24 TH MAY, 2019. 13 I.T.A. NO.401/CHNY/19 KRI. . ,156 76(1 /COPY TO: 1. *+ /APPELLANT 2. ,-*+ /RESPONDENT 3. 0 81 () /CIT(A)-17, CHENNAI 4. CIT (EXEMPTIONS), CHENNAI. 5. 69 ,1 /DR 6. :' ; /GF.