DCIT (EXEMPTIONS), NUNGAMBAKKAM V. M/S TAMILNADU TENNIS ASSOCIATION , SDAT , NUNGAMBAKKAM

ITA 601/CHNY/2022

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 9464 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 14-07-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation
• Section: 12; 11; 12AA

Judgement Text

आयकर अपीलीय अिधकरण ‘बी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय +ी मनोज कु मार अ/वाल ,लेखा सद4 एवं माननीय +ी संजय शमा8, ाियक सद4 के सम9। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI SONJOY SARMA, JUDICIAL MEMBER आयकर अपील सं./ ITA No.601/Chny/2022 (िनधा8रण वष8 / Assessment Year: 2013-14) DCIT (Exemptions), Chennai Circle, Chennai. बनाम/ V s. M/s. Tamilnadu Tennis Association SDAT, Tennis Association, Lake Area, Nungambakkam, Chennai – 600 034. थायी लेखा सं./जीआइ आर सं./P AN /GI R No . AAAAT -0 1 6 4 - H (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Assessee by : Shri N. Arjunraj (C.A) for Shri S. Sridhar, (Advocate)-Ld. ARs थ की ओरसे/Revenue by : Ms. M.S. Deeeptha (JCIT) –Ld. DR सुनवाई की तारीख/Date of Hearing : 25-08-2022 घोषणा की तारीख /Date of Pronouncement : 07-09-2022 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by revenue for Assessment Year (AY) 2013-14 arises out of the order of learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 19-05- 2022 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) of the Act on 02-03-2016. The sole grievance of the revenue is grant of exemption u/s 11 to the assessee by Ld. CIT(A) disregarding the proviso to Sec.2(15) as invoked by Ld. AO. ITA No.601/Chny/2022 - 2 - 2. The Ld. Sr. DR justified invocation of proviso to Sec.2(15) by Ld. AO and relied on the assessment order. The Ld. AR, on the other hand, submitted that the issue stood covered in assessee’s favor by orders of Tribunal in earlier years. The Ld. AR submitted that it has been held by the Tribunal that the assessee’s activities constitute ‘education’ and therefore, the proviso to 2(15) would not apply to the case of the assessee. Having heard rival submissions, the appeal is disposed-off as under. 3. The assessee is a registered trust u/s 12AA and it claimed exemption u/s 11 & 12 as applicable to a registered trust. The Ld. AO, considering the nature of income of the assessee, held that the main receipt of the assessee as well as main expenditure was in respect of conducting ‘Aircel Chennai Open Tournament’. The assessee was in receipt of various streams of income including sponsorship receipts. The profit was not incidental but substantial in nature. The activities of the assessee clearly come within the purview of ‘Business’. Finally, invoking the proviso to Sec.2(15), the surplus arising from this activity was brought to tax. Apart from this, the expenditure incurred outside India for training of players was also disallowed u/s 11(1)(a). After making various other adjustments including disallowance of depreciation, the income was computed as Rs.182.53 Lacs. 4. The Ld. CIT(A) relied upon Tribunal’s order in assessee’s own case for AYs 2009-10 & 2010-11, ITA Nos.1757 & 1758/Mds/2013 common order dated 28.11.2014. In this order, it was held that sports promotion would be human resource development and considering the polity declaration of government of India, sports is construed at par with education. Accordingly, the objects of the assessee would fall ITA No.601/Chny/2022 - 3 - within the scope of education as defined u/s 2(15). Accordingly, proviso to Sec.2(15) would not be applicable. The disallowance of depreciation was also adjudicated in assessee’s favor in the same order. Considering the same, Ld. CIT(A) allowed the grounds raised by the assessee. Aggrieved, the revenue is in further appeal before us. 5. Before us, the position that similar issue has been addressed by the Tribunal in earlier years, remain undisturbed before us. This decision has subsequently been followed by the co-ordinate bench in ITA Nos.2558 & 2559/Mds/2016 for AYs 2011-12 & 2012-13 also vide common order dated 18.01.2018. Therefore, we do not find any infirmity in the impugned order. 6. The appeal stands dismissed. Order pronounced on 07 th September, 2022. Sd/- (SONJOY SARMA) ाियक सद4 /JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद4 / ACCOUNTANT MEMBER चे,ई / Chennai; िदनांक / Dated : 07-09-2022 EDN/- आदेश की Uितिलिप अ /ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु (अपील)/CIT(A) 4. आयकर आयु /CIT 5. िवभागीय ितिनिध/DR 6. गाड फाईल/GF