ACIT (Exemptions)i/c, Circle, Hyd, Hyderabad V. Hyderabad Cricket Association, Hyd, Hyderabad

ITA 531/HYD/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2503 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 13-06-2017
• Assessment Year: 2006-2007
• Appeal Filed On: 05-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S NARSAMMA
• Keywords: Depreciation; Charitable institution; Opportunity of being heard; Source of fund; Additional evidence; Cancellation of registration
• Section: 40A(3); 133A; 12AA; 148; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. ASST. YEAR APPELLANT RESPONDENT 509/HYD/15 2006-07 HYDERABAD CRICKET ASSOCIATION, HYDERABAD [PAN: AAATT6229Q] JT. DIRECTOR OF INCOME TAX, (EXEMPTIONS), HYDERABAD 531/HYD/15 ASST. COMMISSIONER OF INCOME TAX, (EXEMPTIONS) I/C, CIRCLE, HYDERABAD HYDERABAD CRICKET ASSOCIATION, HYDERABAD [PAN: AAATT6229Q] 510/HYD/15 2007-08 HYDERABAD CRICKET ASSOCIATION, HYDERABAD [PAN: AAATT6229Q] JT. DIRECTOR OF INCOME TAX, (EXEMPTIONS), HYDERABAD 532/HYD/15 ASST. COMMISSIONER OF INCOME TAX, (EXEMPTIONS) I/C, CIRCLE, HYDERABAD HYDERABAD CRICKET ASSOCIATION, HYDERABAD [PAN: AAATT6229Q] FOR ASSESSEE : SHRI C.S. SUBRAHMANYAM, SHRI V. SIVA KUMAR, ARS FOR REVENUE : SMT S. NARSAMMA, CIT-DR DATE OF HEARING : 20-09-2017 DATE OF PRONOUNCEMENT : 25-10-2017 O R D E R PER S. RIFAUR RAHMAN, A.M. : THESE CROSS-APPEALS ARE BY ASSESSEE AND REVENUE AGA INST THE ORDER(S) OF THE COMMISSIONER OF INCOME TAX (APPEALS )-9, HYDERABAD CRICKET ASSOCIATION :- 2 - : HYDERABAD, FOR THE AYS. 2006-07 & 2007-08. SINCE THE ISSUES ARE COMMON IN BOTH THE ASSESSMENT YEARS, WE DECIDE THE SAM E BY THIS COMMON ORDER. FOR THE SAKE OF CONVENIENCE, THE FACTS IN AY. 2006- 07 ARE TAKEN. AY. 2006-07: 2. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE IS A CRIC KET ASSOCIATION, AFFILIATED TO THE BOARD OF CONTROL FOR CR ICKET IN INDIA (BCCI) WITH THE PRIMARY OBJECT OF PROMOTING, ORGANIZI NG, MANAGEMENT AND CONDUCT OF THE GAME OF CRICKET WITHIN ITS JURISDICTION IN THE STATE OF ANDHRA PRADESH. ASSESSEE WAS GRANTED REGISTRATION U/S. 12AA OF THE INCOME TAX ACT [ACT] VID E ORDER OF THE DIT(E) IN F. NO. I/28/12A/12 13/DIT(E) DT.16-01-200 3 W.E.F. 01- 04-2002 AND LATER, IT WAS MODIFIED TO BE GRANTED W.E.F . 20-01-1997 PURSUANT TO THE DIRECTIONS OF THE ITAT DT. 26-12-2008. ASSESSEE FILED ITS RETURN OF INCOME FOR THE AY. 2006-07 ON 07-1 1-2006 DECLARING NIL INCOME. THE RETURN WAS PROCESSED U/S. 143(1) OF THE ACT ON 29-03-2007. 3. A SURVEY U/S. 133A OF THE ACT WAS CONDUCTED ON 21- 10-2011 IN THE OFFICE PREMISES OF THE ASSESSEE LOCATED AT RAJI V GANDHI INTERNATIONAL CRICKET STADIUM, UPPAL, HYDERABAD. IT W AS FOUND THAT THE ASSESSEE WAS CARRYING ON ACTIVITIES WHICH ARE NOT CHARITABLE IN NATURE. IT WAS OBSERVED THAT THE ASSESSEE W AS DERIVING INCOME FROM VARIOUS COMMERCIAL SOURCES INC LUDING RECEIPTS FROM LEAGUE FEES, SALE OF TICKETS OF ONE DAY INTERNATIONAL MATCHES, IPL MATCHES, ADVERTISEMENT CHARGES, FRANCHISE FEES AND SPONSORSHIP FEES FROM VARIOUS COMPANIES. HYDERABAD CRICKET ASSOCIATION :- 3 - : 4. IN VIEW OF THE ABOVE, DIT(E) WAS OF THE OPINION TH AT THE ASSESSEE HAS LOST ITS CHARACTER AS A CHARITABLE SOCIET Y IN VIEW OF THE FIRST PROVISO TO SECTION 2(15) OF THE ACT. THEREFORE, THE ASSESSEE WAS ISSUED A SHOW CAUSE LETTER DT. 17-11-2011 FOR WITH DRAWAL OF THE REGISTRATION GRANTED EARLIER U/S. 12AA OF THE ACT. 5. CONSIDERING THE ABOVE FACTUAL MATRIX, ASSESSING OF FICER (AO) REOPENED THE ASSESSMENT AND NOTICE U/S. 148 OF THE ACT WAS ISSUED ON 08-03-2013. IN RESPONSE TO THE NOTICE U/S. 148, A SSESSEE FILED A LETTER DT. 12-03-2013 STATING THAT THE RETURN FILED ON 11-12-2006 VIDE ACKNOWLEDGEMENT NO. 2706 MAY BE TREATED AS RETU RN FILED IN RESPONSE TO NOTICE U/S. 148. 6. FURTHER, AO NOTICED BY REFERRING TO THE ANNUAL REPO RT AND MATERIAL FOUND DURING SURVEY U/S. 133A, ASSESSEE IS IN RECEIPT OF INCOME FROM THE FOLLOWING SOURCES: AMOUNT (RS) 1. SALE OF CORPORATE BOXES (RECEIVED DURING THE YEAR) 2,09,90,001 2. RECEIPT FROM IN - STADIA ADVERTISEMENT RIGHTS 3. RECEIPT OF TV SUBSIDY FROM BCCI 3,45,00,000 4. RECEIPT FROM SALE PROCEEDS OF TICKETS FOR ONE DAY INTERNATIONAL CRICKET MATCH GROSS RECEIPT 1,66,91,350 5. RECEIPT FROM CORPORATE SPONSORSHIP (VISAKA INDUSTRIES RS. 1 CRORE RECEIVED DURING THE YEAR) 6. GROUND FEE COLLECTIONS 5,33,190 7. BY CONSIDERING THE ABOVE FINDINGS, AO OBSERVED THA T THE ASSESSEE HAS NO VALID REGISTRATION U/S. 12AA OF THE AC T FOR THE AY. 2006-07 IN VIEW OF ITS CANCELLATION BY DIT(E), EVEN I F SUCH REGISTRATION WERE AVAILABLE, THE EXEMPTION U/S. 11 IS N OT ALLOWABLE HYDERABAD CRICKET ASSOCIATION :- 4 - : IN VIEW OF THE ASSESSEES ACTIVITIES WHICH ARE NEITHER CHARITABLE NOR ALLOWED BY ITS OWN MEMORANDUM OF ASSOCIATION. ACCORDI NGLY, EXEMPTION U/S. 11 IS DENIED BY THE AO. 8. FURTHER, ASSESSEE WAS ASKED TO PRODUCE ITS BOOKS OF ACCOUNT TO BE ASSESSED AS AN AOP UNDER NORMAL PROVISIONS OF THE INCOME TAX ACT. THE ASSESSEE HAS SUBMITTED COPY OF ACCOUNTS IN CD FORMAT AND FURTHER THE ASSESSEE HAS SUBMITTED BEFORE TH E AO THAT IT COULD NOT SUBMIT BILLS AND VOUCHERS AND OTHER RECO RDS DUE TO THE FACT THAT ALL THE ABOVE RECORDS WERE SEIZED BY ANTI-CORR UPTION BUREAU (ACB) AND THEY WERE ABLE TO PRODUCE ONLY SOME BILLS/VOUCHERS WITH REGARD TO CASH PAYMENTS. AFTER CON SIDERING THE INFORMATION SUBMITTED BY THE ASSESSEE, AO HAS MADE FOLL OWING ADDITIONS DUE TO NON-SUBMISSION OF RELEVANT BILLS AND VOUCHERS BEFORE HIM: I. DISALLOWANCE U/S. 40A(3) (GROSS) RS.7,19,372/- [DIS ALLOWANCE OF 20% OF THE ABOVE EXPENDITURE] I.E., RS. 1,43,874/- ; II. EXPENDITURE DISALLOWED (10%) OF THE TOTAL EXPENDITURE W HICH WAS NOT SUBSTANTIATED; III. DISALLOWED DEPRECIATION [10%] OF THE VALUE OF ASSETS FOR WHICH NO EVIDENCE SUBMITTED TO THE VALUE OF RS. 96,237/-; 9. AGGRIEVED WITH THE ABOVE ORDER, ASSESSEE PREFERRE D AN APPEAL BEFORE THE CIT(A) AND CIT(A) AFTER CONSIDERING THE SU BMISSIONS OF THE ASSESSEE HAS ADJUDICATED IN FAVOUR OF ASSESSEE BY OBSERVING THAT IN VIEW OF THE ORDER OF THE ITAT DT. 31-05-2012, THE MATTER WAS REMANDED BACK TO THE FILE OF DIT(E), WHICH AMOUNTS TO REGISTRATION OF ASSESSEE STANDS RESTORED AS OF DATE. THEREFORE, E XEMPTION U/S. HYDERABAD CRICKET ASSOCIATION :- 5 - : 11 CANNOT BE DENIED TO THE ASSESSEE FOR THE REASON OF A BSENCE OF REGISTRATION. FURTHER, AFTER CONSIDERING THE VARIOUS S UBMISSIONS OF ASSESSEE, HE FOUND THAT THE ACTIVITIES AND SOURCES OF IN COME OF ASSESSEE ARE SIMILAR TO THE FACTS OF THE TAMIL NADU CR ICKET ASSOCIATION, FOLLOWING THE DECISION OF HON'BLE MADRA S HIGH COURT IN THE CASE OF TAMIL NADU CRICKET ASSOCIATION, ASSESSEE W AS FOUND TO BE NOT ENGAGED IN ACTIVITIES IN NATURE OF TRADE AND CO MMERCE OR BUSINESS. THEREFORE, ASSESSEE IS ELIGIBLE FOR EXEM PTION U/S. 11 OF THE ACT. 10. AGGRIEVED WITH THE ABOVE FINDINGS OF THE CIT(A), R EVENUE IS IN APPEAL BEFORE US WITH THE FOLLOWING GROUNDS: 1. THE ORDER OF THE LD. CIT(A) IS ERRONEOUS BOTH O N FACTS AND IN LAW. 2. THE LD.CIT(A) ERRED IN HOLDING THAT THE REGISTRA TION OF THE ASSESSEE STANDS RESTORED AS ON DATE, AND THAT EXEMPTION U/S. 11 CANNOT BE DENIED TO THE ASSESSEE FOR REASONS OF ABSENCE OF REGISTRAT ION. 3. THE LD.CIT(A) OUGHT TO HAVE APPRECIATED THAT, WH EN THE HON'BLE ITAT IN ITS ORDER IN ITA NO.1228/HYD/2012 DT.26.03.2014, HA VE SET ASIDE THE EARLIER DATED 31.05.2012 OF THE DIT(E) PASSED U/S.1 2AA(3) CANCELLING REGISTRATION IN THE CASE OF THE ASSESSEE, WITH A DI RECTION TO HIM TO PASS A FRESH ORDER GIVING AN OPPORTUNITY TO THE ASSESSEE, UNDER THAT CIRCUMSTANCES, IT CANNOT BE SAID THAT REGISTRATION OF THE ASSESSEE STANDS RESTORED AS ON DATE. 4. THE LD.CIT(A) OUGHT TO HAVE APPRECIATED THAT WHE N FOLLOWING THE SAID ORDER OF THE HON'BLE ITAT IN ITA NO.1228/HYD/2012 D T.26.03.2014, THE MATTER OF CANCELLATION OF REGISTRATION IN THE CASE OF THE ASSESSEE WAS PENDING BEFORE THE CIT(E) (FORMERLY DIT(E)), THE LD .CIT(A) WAS NOT CORRECT IN HOLDING THAT THE REGISTRATION OF THE ASSESSEE STAND S RESTORED AS ON DATE. 5. THE LD.CIT(A) ERRED IN HOLDING THAT THE ACTIVITY AND SOURCES OF INCOME IN THE CASE OF THE ASSESSEE ARE SIMILAR TO THAT OF THE TAMIL NADU CRICKET ASSOCIATION AND THAT THE ASSESSEE WAS NOT ENGAGED I N ACTIVITIES IN THE NATURE OF TRADE, COMMERCE OR BUSINESS AND THEREFORE , IS ELIGIBLE FOR EXEMPTION U/S.11. HYDERABAD CRICKET ASSOCIATION :- 6 - : 6. THE LD.CIT(A) OUGHT TO HAVE APPRECIATED THAT THE ASSESSEE HAS CARRIED ON SEVERAL ACTIVITIES WHICH ARE NOT IN ACCORDANCE W ITH ITS OBJECTS AS DISCUSSED IN THE ORDER DATED 31.05.2012 OF THE DIT( E), WHICH ENTAILED CANCELLATION OF REGISTRATION UJS.12AA(3) IN THE CAS E OF THE ASSESSEE, AND WHILE SETTING ASIDE THE SAID ORDER OF THE DIT(E), D IRECTING HIM TO PASS FRESH ORDER AFTER GIVING AN OPPORTUNITY TO THE ASSESSEE, THE HON'BLE ITAT HAS NOT GIVEN ANY DECISION ON THE MERIT OF SUCH FINDING GIV EN BY THE DIT(E). 7. AT THIS STAGE, IT MAY BE FURTHER MENTIONED THAT CONSEQUENT TO THE SAID ORDER OF THE HON'BLE ITAT IN ITA NO.1228/HYD/2012, THE CIT(E), IN THE MEAN TIME, VIDE HIS ORDER DATED 13.03.2015, PASSED U/S.12AA(3) AFRESH, HAS CANCELLED THE REGISTRATION IN THE CASE OF THE A SSESSEE W.E.F. 01.10.2004 AND HENCE, THE ASSESSEE IS NOT ELIGIBLE FOR EXEMPTION U/S. 11 OF THE ACT FOR THE ASST. YEAR 2006-07. 8. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME O F HEARING OF THE APPEAL. 11. WITH REGARD TO DISALLOWANCE OF VARIOUS EXPENDITURE S, LD.CIT(A) HAS SUSTAINED THE ADDITION AND ALSO ENHANCE D THE ADDITION AS BELOW: 11.1. DISALLOWANCE U/S. 40A(3): DURING THE APPELLATE PROCEEDINGS, ASSESSEE SUBMITTED THAT THE CASH PAYMENTS WE RE LESS THAN RS. 20,000/- EACH, ARE PAYMENTS TO SEVERAL PERSO NS AND HAD BEEN COLLECTED TOGETHER WHILE MAKING ENTRIES IN THE BOO KS. ASSESSEE ADMITTED THAT OUT OF THE CASH PAYMENT OF RS. 7,1 9,372/- LISTED IN THE ASSESSMENT ORDER, ASSESSEE WAS UNABLE TO PRODUCE CASH VOUCHERS FOR RS. 3,48,900/- DUE TO THE FACT THAT V ARIOUS DOCUMENTS HAD BEEN SEIZED BY ACB AND COULD NOT BE TRA CED. LD.CIT(A) REFERRED THE MATTER BACK TO THE FILE OF AO FO R VERIFICATION. THE AO SUBMITTED THAT APART FROM THE EXPENSES TO THE EXTEN T OF RS. 3,48,900/-, FOR WHICH ASSESSEE HAS ADMITTEDLY FAILED TO PRODUCE THE VOUCHERS, FURTHER TO THE EXTENT OF RS. 86,050/- ALSO N OT SUBSTANTIATED WITH PROPER EVIDENCE. CONSIDERING THE A OS REMAND HYDERABAD CRICKET ASSOCIATION :- 7 - : REPORT, LD.CIT(A) CONFIRMED THE AMOUNT OF RS. 4,34,950 /- AS DISALLOWANCES. 11.2. DISALLOWANCE OF DEPRECIATION: LD.CIT(A) SUSTAI NED THE ADDITION MADE BY THE AO IN THIS REGARD. 11.3. DISALLOWANCE OF EXPENDITURE OF RS. 8,82,856/-: SINCE ASSESSEE COULD NOT PRODUCE ANY SUPPORTING EVIDE NCE FOR THE VALUE OF RS. 88,28,563/-, LD.CIT(A) HAS CONFIRMED TH E ADDITION OF RS. 88,28,563/- AS NOT APPLIED FOR CHARITABLE PURPOSE . EVEN THOUGH, AO HAS DISALLOWED ONLY TO AN EXTENT OF 10% OF THE EXPENDITURE WHICH WAS NOT SUBSTANTIATED WITH EVIDENCE. 12. AGGRIEVED WITH THE ABOVE ORDER, ASSESSEE PREFERR ED AN APPEAL BEFORE US RAISING THE FOLLOWING GROUNDS: 1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) [C.I.T(A)), HYDERABAD IS ERRONEOUS IN LAW AND ON TH E FACTS OF THE CASE. 2. THE LEARNED C.I.T(A) ERRED IN HOLDING THAT THE A SSESSEE'S CLAIM OF HAVING INCURRED EXPENDITURE FOR CHARITABLE PURPOSES CANNOT BE ACCEPTED TO THE EXTENT OF RS.88,28,563/-, RS.4,34,950/- AND RS.96,2 37/- ON THE GROUND THAT THE ASSESSEE DID NOT PRODUCE EVIDENCE FOR THE SAID AMOUNT. 3. THE LEARNED C.I.T(A) FAILED TO APPRECIATE THAT T HE ASSESSING OFFICER [A.O]NOT ONLY EXAMINED BOOKS OF ACCOUNT BUT ALSO VO UCHERS PRODUCED BY THE ASSESSEE AND RECORDED THAT OUT OF CASH PAYMENTS OF RS. 1,18,41,188/- FOR WHICH EVIDENCE WAS SOUGHT, THE ASSESSEE PRODUCE D DETAILS AND VOUCHERS FOR PAYMENTS AGGREGATING TO RS. 1,15,85,58 8/AND IN THE FACE OF SUCH LEVEL OF COMPLIANCE, IT WAS NOT RATIONAL AND R EASONABLE TO HOLD THAT THE ASSESSEE'S CASE WAS ONE OF ABSENCE OF EVIDENCE. 4. THE LEARNED C.I.T(A) OUGHT TO HAVE APPRECIATED T HAT THE A.O EXERCISED JUDICIOUS DISCRETION AND MADE DISALLOWANCE AT 10% B ASED ON THE STATE OF ACCOUNTS AND AFTER TAKING INTO ALL THE FACTS AND CI RCUMSTANCES OF THE CASE AND SAME OUGHT NOT TO HAVE BEEN UPROOTED IN A SUMMA RY MANNER. HYDERABAD CRICKET ASSOCIATION :- 8 - : 5. THE LEARNED C.I.T(A) OUGHT TO HAVE APPRECIATED T HAT THE ASSESSEE GOT ITS ACCOUNTS AUDITED U/S.12A(B) OF THE ACT AND FURNISHE D A REPORT IN FORM NO.10B QUANTIFYING THE AMOUNT APPLIED FOR CHARITABL E PURPOSES AND THAT THERE WERE NO QUALIFICATIONS IN THE SAID REPORT ABO UT ANY UNVOUCHED EXPENDITURE WARRANTING A SWEEPING FINDING THAT AN A MOUNT OF RS.88,28,563 CANNOT BE ACCEPTED AS SPENT FOR CHARIT ABLE PURPOSES. 6. WITHOUT PREJUDICE TO THE PRECEDING GROUNDS OF AP PEAL, THE LEARNED C.I.T(A) IS NOT JUSTIFIED IN ENHANCING THE DISALLOW ANCE MENTIONED IN GROUND NO 2 ABOVE WITHOUT AFFORDING AN OPPORTUNITY TO THE ASSESSEE. 7. THE APPELLANT CRAVES LEAVE TO ADD TO, AMEND OR M ODIFY THE ABOVE GROUNDS OF APPEAL EITHER BEFORE OR AT THE TIME OF H EARING OF THE APPEAL, IF IT IS CONSIDERED NECESSARY. 13. CONSIDERED THE RIVAL SUBMISSIONS AND MATERIAL FAC TS ON RECORD. THE REVENUE IS IN APPEAL BEFORE US AGGRIEVE D WITH THE FINDINGS OF THE LD.CIT(A) THAT ASSESSEE IS ELIGIBLE F OR DEDUCTION U/S. 11 OF THE ACT. IT IS PERTINENT TO NOTE THAT THE REGISTRATION WAS CANCELLED FOLLOWING THE SURVEY CONDUCTED IN THE PREMI SES OF THE ASSESSEE ON 21-10-2011. AGGRIEVED WITH THE ABOVE CAN CELLATION, ASSESSEE PREFERRED AN APPEAL BEFORE THE CO-ORDINATE BENCH AND THE SAME WAS REMITTED BACK TO THE FILE OF DIT(E) DIRECTING HIM TO COMMUNICATE TO THE ASSESSEE ALL THE ISSUES ARISE IN HIS ORDER AND GIVE A REASONABLE OPPORTUNITY TO ASSESSEE TO EXPLAIN ON THOSE ISSUES AND AFTER CONSIDERING THE ASSESSEES SUBMISSI ON, DECIDE THE ISSUE IN ACCORDANCE WITH LAW. 14. CONSIDERING THE ABOVE DIRECTION, DIT(E) HELD THAT A SSESSEE IS CARRYING ON ACTIVITIES NOT ACCORDING TO ITS OBJECTS AND FURTHER THAT IT IS CARRYING ON COMMERCIAL ACTIVITIES. THEREFORE, IT IS NOT ELIGIBLE FOR REGISTRATION U/S. 12AA OF THE ACT. AT THIS STAGE, REVENU E HAS FILED THE PRESENT APPEAL WHICH IS UNDER CONSIDERATION. HOWEV ER, AGGRIEVED WITH THE ORDER OF THE DIT(E), ASSESSEE FILE D AN APPEAL BEFORE THE CO-ORDINATE BENCH OF THIS TRIBUNAL CHALLENG ING THE HYDERABAD CRICKET ASSOCIATION :- 9 - : CANCELLATION OF THE REGISTRATION U/S. 12AA. THE CO-OR DINATE BENCH HAS PASSED THE ORDER IN ITA NO. 649/HYD/2015 DT. 13-1 0-2016, SETTING ASIDE THE ORDER OF THE DIT(E) FOR WITHDRAWAL OF REGISTRATION U/S. 12AA(3) OF THE ACT. FURTHER, IN THE ABOVE ORDER, IT HAS OPINED THAT THE EXPENDITURE WHICH IS NOT SUPPORTED BY BILLS AND VOUCHERS ALSO THAT WHICH CAN ONLY LEAD TO DISALLOWANCE AND NOT FOR WITHDRAWAL OF REGISTRATION U/S. 12AA(3) OF THE ACT. W ITH THE ABOVE DIRECTION, REGISTRATION OF THE ASSESSEE IS RESTORED W.E. F. 20 TH JANUARY, 1997. SINCE THE PRESENT APPEAL IS FILED BY R EVENUE BEFORE THE FINDINGS OF THE CO-ORDINATE BENCH IN ITA NO. 649/H YD/2015, IN OUR CONSIDERED VIEW, AT THIS STAGE, THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE CONSIDERING THE FINDINGS OF THE CO-ORD INATE BENCH IN THE ORDER IN ITA NO. 649/HYD/2015 AND ACCORDINGL Y APPEAL FILED BY THE REVENUE IS DISMISSED. 15. IN THE RESULT, APPEAL OF REVENUE FOR THE AY. 2006- 07 IS DISMISSED. 16. COMING TO THE ASSESSEES APPEAL FOR THE AY. 2006- 07, ASSESSEE HAS FILED ADDITIONAL EVIDENCE BEFORE US PRA YING THAT THE ADDITIONAL EVIDENCE CONTAINS THE RELEVANT SUPPORTING VO UCHERS/BILLS WHICH WERE SEIZED BY THE ACB. ASSESSEE HAS COLLECTE D AND COLLATED FROM THE ACB OFFICIALS MAINLY TO SUBMIT BEFORE US, THE SAME WAS ACCEPTED AS ADDITIONAL EVIDENCE BY THE BENCH WHICH W AS NOT SUBMITTED BEFORE REVENUE AUTHORITIES. HENCE, ACCORDINGL Y, FOR THE SAKE OF JUSTICE, WE ARE REMITTING THIS ADDITIONAL EVID ENCE TO THE FILE OF AO FOR VERIFICATION. IT IS IN LINE WITH THE DIRECTI ONS OF THE CO-ORDINATE BENCH IN ITS EARLIER ORDER IN ITA NO. 649 /HYD/2015, DT. 13-10-2016, AS PER WHICH THE EXPENDITURE WHICH IS NOT HYDERABAD CRICKET ASSOCIATION :- 10 -: SUPPORTED MAY LEAD TO DISALLOWANCE. ACCORDINGLY, WE A RE DIRECTING THE AO TO VERIFY THE ADDITIONAL EVIDENCE IN ORDER TO JUS TIFY THE CLAIM OF ASSESSEE AND ALSO THE 12AA REGISTRATION IS IN PLAC E, THE EXPENDITURE SUPPORTED WITH PROPER EVIDENCE CAN BE CON SIDERED FOR DEDUCTION U/S. 11 OF THE ACT. WITH THIS LIMITED PURPOSE OF VERIFICATION OF ADDITIONAL EVIDENCE, WE REMIT THIS TO TH E FILE OF AO AND NEEDLESS TO SAY THAT ASSESSEE MAY BE GIVEN PROPERT Y OPPORTUNITY OF BEING HEARD. ACCORDINGLY, THE GROUNDS RAISED BY ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 17. IN THE RESULT, APPEAL OF ASSESSEE FOR THE AY. 2006 -07 IS ALLOWED FOR STATISTICAL PURPOSES. AY. 2007-08: 18. SINCE THE ISSUES ARE COMMON IN THIS ASSESSMENT YEA R ALSO (CROSS APPEALS OF BOTH ASSESSEE AND REVENUE), AS PE R OUR EARLIER DISCUSSION FOR THE AY. 2006-07 IN THIS ORDER ABOVE, THE APPEAL OF REVENUE IS DISMISSED AND APPEAL OF ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. 19. TO SUM-UP, BOTH THE APPEALS OF ASSESSEE FOR THE AYS. 2006- 07 & 2007-08 ARE ALLOWED FOR STATISTICAL PURPOSES AND BOTH THE APPEALS OF REVENUE FOR THE AYS. 2006-07 & 2007-08 AR E DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH OCTOBER, 2017 SD/- SD/- (P. MADHAVI DEVI) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEM BER HYDERABAD, DATED 25 TH OCTOBER, 2017 TNMM HYDERABAD CRICKET ASSOCIATION :- 11 -: COPY TO : 1. HYDERABAD CRICKET ASSOCIATION, RAJIV GANDHI INTERNATIONAL CRICKET STADIUM, VISAKA CRICKET GROUN D, PLOT NOS. 1 TO 5, TARNAKA-UPPAL ROAD, HYDERABAD. 2. JT. DIRECTOR OF INCOME TAX (EXEMPTIONS), HYDERAB AD. 3. ASST. COMMISSIONER OF INCOME TAX (EXEMPTIONS) I/ C, CIRCLE, HYDERABAD. 4. CIT (APPEALS)-9, HYDERABAD. 5. CIT(EXEMPTIONS), HYDERABAD. 6. D.R. ITAT, HYDERABAD. 7. GUARD FILE.