Punjab Cricket Association, Mohali V. ACIT, Mohali

ITA 762/CHANDI/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8468 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 29-01-2020
• Assessment Year: 2012-2013
• Appeal Filed On: 02-05-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P K SHARMA
• Assessee Lawyers: RAKESH MARWAH
• Keywords: Capital asset; Charitable institution; Opportunity of being heard; Maximum Marginal Rate; Capital receipt; Set aside
• Section: 12A; 12AA; 13; 12; 11

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B CHANDIGARH , !' # $ % &' , '( BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 760/CHD/2017 / ASSESSMENT YEAR : 2009-10 PUNJAB CRICKET ASSOCIATION, SECTOR 63, SAS NAGAR, MOHALI THE ITO, WARD 6(4), MOHALI ./PAN NO: AAATP3502C / APPELLANT /RESPONDENT APPEAL AGAINST ORDER OF CIT(A) -2 CHANDIGARH DATED 23.2.2017 ./ ITA NO. 761/CHD/2017 / ASSESSMENT YEAR : 2011-12 5PUNJAB CRICKET ASSOCIATION, SECTOR 63, SAS NAGAR, MOHALI THE DCIT, CIRCLE 6 (1), MOHALI ./PAN NO: AAATP3502C / APPELLANT /RESPONDENT APPEAL AGAINST ORDER OF CIT(A) -2 CHANDIGARH DATED 07.2.2017 ./ ITA NO. 762/CHD/2017 / ASSESSMENT YEAR : 2012-13 PUNJAB CRICKET ASSOCIATION, SECTOR 63, SAS NAGAR, MOHALI THE ACIT, CIRCLE 6 (1), MOHALI ./PAN NO: AAATP3502C / APPELLANT /RESPONDENT APPEAL AGAINST ORDER OF CIT(A) -2 CHANDIGARH DATED 16.2.2017 ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 2 ./ ITA NO. 763/CHD/2017 / ASSESSMENT YEAR : 2013-14 PUNJAB CRICKET ASSOCIATION, SECTOR 63, SAS NAGAR, MOHALI THE DCIT (EXEMPTIONS), CIRCLE-1, MOHALI ./PAN NO: AAATP3502C / APPELLANT /RESPONDENT APPEAL AGAINST ORDER OF CIT(A) - 2 CHANDIGARH DATED 17 .2.2017 ! /ASSESSEE BY : SHRI RAKESH MARWAH, CA ' ! / REVENUE BY : SHRI P.K. SHARMA, ADDL. CIT # $ % /DATE OF HEARING : 29.01.2020 &'() % / DATE OF PRONOUNCEMENT : 09.07.2020 ') / ORDER PER BENCH: THE CAPTIONED APPEALS ARE PREFERRED BY THE ASSESSEE RELATING TO ASSESSMENT YEARS 2009-10 AND 2011-12 TO 2013-14 AGA INST THE SEPARATE ORDERS (AS MENTIONED ABOVE) OF COMMISSIONER OF INCO ME TAX (APPEALS), CHANDIGARH [HEREINAFTER REFERRED TO AS CIT (A)]. SINCE IDENTICAL GROUNDS HAVE BEEN RAISED BY THE ASSESSEE IN ALL THE APPEALS, THEREFORE, THESE HAVE BEEN HEARD TOGETHER AND ARE BEING DISPOS ED OF VIDE THIS COMMON AND CONSOLIDATED ORDER. 2. THE RESPECTIVE GROUNDS TAKEN BY THE ASSESSEE IN DIFFERENT ASSESSMENT YEARS ARE AS UNDER:- ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 3 ITA NO. 760/CHD/2017 (A.Y. 2009-10):- I) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) H AS ERRED IN FACTS AND LAW IN CONFIRMING THE CONCLUSION DRAWN BY THE LD. AO THAT THE ACTIVITIES OF THE APPELLANT, I.E. H OLDING OF MATCHES, SALE OF MATCH TICKETS, RECEIPT FROM BOOKIN G OF CORPORATE BOXES BY COMPANIES, RECEIPT OF IPL SUBVEN TION FROM BCCI, INCOME FROM CLUB FACILITIES, RECEIPT FRO M SPONSORS ETC, ARE OF COMMERCIAL NATURE AND HENCE THE APPELLA NT IS NOT ELIGIBLE FOR EXEMPTION U/S 11 & 12 AS IT IS HIT BY THE FIRST PROVISO TO SECTION 2(15) OF THE INCOME TAX ACT, 196 1. THE DENIAL OF DEDUCTION U/S 11 & 12 OF THE INCOME TAX A CT, 1961 ON THIS ACCOUNT, MERITS TO BE SET ASIDE. II) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) H AS ERRED IN FACTS AND LAW IN CONFIRMING THE CONCLUSION DRAWN BY THE LD. AO THAT THE RENDERING OF SERVICES IN RESPECT OF INDIAN PREMIER LEAGUE CRICKET (IPL) BY THE APPELLANT IS A BUSINESS ACTIVITY AND HENCE IT NOT ELIGIBLE FOR EXEMPTION U/ S 11 & 12 AS IT IS HIT BY THE FIRST PROVISO TO SECTION 2(15) OF THE INCOME TAX ACT, 1961. THE LD. COMMISSIONER OF INCOME-TAX (APPE ALS) AS WELL AS LD. AO HAS FAILED TO APPRECIATE THE ARRANGE MENT OF CONDUCTING INDIAN PREMIER LEAGUE CRICKET (IPL) MATC HES AGREED BETWEEN BCCI AND KINGS XI PUNJAB AND THE ROL E OF APPELLANT THEREIN. THEREFORE, THE CONCLUSIONS DRAWN ARE NOT SUSTAINABLE. III) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) H AS ERRED IN LAW AND ON THE FACTS IN NOT FOLLOWING THE RATIO LAID DOWN BY THE HON'BLE IT AT, BENCH 'A' JUDGMENT IN THE CASE O F M/S. TAMIL NADU CRICKET ASSOCIATION V. DDIT (EXEMPTION) CHENNAI ITA NO. 1535,1536 & 1537/MDS/2014 DATED 14/08/2015, ON SIMILAR SET OF FACTS WITHOUT GIVING ANY REASON FOR THE SAME. IV) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) HAS ERRED IN LAW BY NOT FOLLOWING THE JUDGMENT OF HON'B LE PUNJAB & HARYANA HIGH COURT, IN CASE OF TRIBUNE TRUST V. ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 4 COMMISSIONER OF INCOME TAX, CHANDIGARH [2016] 76 TAXMANN.COM 363, IN WHICH THE HON'BLE COURT HAS HEL D THAT EVEN AFTER THE AMENDMENT OF SECTION 2(15) W.E.F. 20 09, TO KNOW WHETHER THE INCOME OF THE TRUST OR THE INSTITU TION IS ANCILLARY OR INCIDENTAL TO THE ATTAINMENT OF THE OB JECTS OR WHETHER IT IS THE PREDOMINANT MOTIVE OR ACTIVITY OF THE TRUST, THE TEST LAID DOWN IN THE JUDGMENT OF THE SUPREME C OURT IN THE CASE OF ADDL. CIT V. SURAT ART SILK CLOTH MANUFACTU RERS ASSOCIATION [1980] 121 ITR 1 / [1979] 2 TAXMANN 501 WOULD APPLY. V) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEAL S) HAS ERRED ON FACTS AND IN LAW IN REJECTING THE LEGITIMACY OF LETTER, DATED 29/09/2009 IN RESPECT OF FORM NO. 10 WHICH WAS DULY ACKNOWLEDGED BY THE DCIT, CIRCLE 6(1), MOHALI, MAIN LY ON THE GROUND THAT RECEIPT NUMBER HAS NOT BEEN MENTION ED ON THAT AND SECONDLY THE SAME WAS NOT SUBMITTED DURING THE ASSESSMENT PROCEEDINGS. VI) THAT THE APPELLANT CRAVES LEAVE TO ALTER, ADD O R DELETE ANY GROUNDS OF APPEAL. ITA NO. 761/CHD/2017 (A.Y. 2011-12) :- I) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) H AS ERRED IN FACTS AND LAW IN CONFIRMING THE CONCLUSION DRAWN BY THE LD. AO THAT THE ACTIVITIES OF THE APPELLANT, I.E. HOLDING OF MATCHES, SALE OF MATCH TICKETS, RECEIPT FROM BOOKING OF CORPORATE BOXES BY COMPANIES, RECEIPT OF IPL SUBVENTION FROM BCCI, INC OME FROM CLUB FACILITIES, RECEIPT FROM SPONSORS ETC, ARE OF COMMERCIAL NATURE AND HENCE THE APPELLANT IS NOT ELIGIBLE FOR EXEMPTION U/S 11 & 12 AS IT IS HIT BY THE FIRST PROVISO TO SECTIO N 2(15) OF THE INCOME TAX ACT, 1961. THE DENIAL OF DEDUCTION U/S 1 1 & 12 OF THE INCOME TAX ACT, 1961 ON THIS ACCOUNT, MERITS TO BE SET ASIDE. II) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) H AS ERRED IN FACTS AND LAW IN CONFIRMING THE CONCLUSION DRAWN BY THE LD. AO THAT THE RENDERING OF SERVICES IN RESPECT OF INDIAN PREMIER LEAGUE CRICKET (IPL) BY THE APPELLANT IS A BUSINESS ACTIVITY AND ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 5 HENCE IT NOT ELIGIBLE FOR EXEMPTION U/S 11 & 12 AS IT IS HIT BY THE FIRST PROVISO TO SECTION 2(15) OF THE INCOME TAX AC T, 1961. THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) AS WELL AS LD. AO HAS FAILED TO APPRECIATE THE ARRANGEMENT OF CONDUCT ING INDIAN PREMIER LEAGUE CRICKET (IPL) MATCHES AGREED BETWEEN BCCI AND KINGS XI PUNJAB AND THE ROLE OF APPELLANT THERE IN. THEREFORE, THE CONCLUSIONS DRAWN ARE NOT SUSTAINABL E. III) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) H AS ERRED IN LAW AND ON THE FACTS IN NOT FOLLOWING THE RATIO LAI D DOWN BY THE HON'BLE IT AT, BENCH 'A' JUDGMENT IN THE CASE OF M/ S. TAMIL NADU CRICKET ASSOCIATION V. DDIT (EXEMPTION) CHENNA I ITA NO. 1535,1536 & 1537/MDS/2014 DATED 14/08/2015, ON SIMILAR SET OF FACTS WITHOUT GIVING ANY REASON FOR THE SAME . IV) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) H AS ERRED IN LAW BY NOT FOLLOWING THE JUDGMENT OF HON'BLE PUNJAB & HARYANA HIGH COURT, IN CASE OF TRIBUNE TRUST V. COM MISSIONER OF INCOME TAX, CHANDIGARH [2016] 76 TAXMANN.COM 363 , IN WHICH THE HON'BLE COURT HAS HELD THAT EVEN AFTER TH E AMENDMENT OF SECTION 2(15) W.E.F. 2009, TO KNOW WHETHER THE I NCOME OF THE TRUST OR THE INSTITUTION IS ANCILLARY OR INCIDENTAL TO THE ATTAINMENT OF THE OBJECTS OR WHETHER IT IS THE PREDOMINANT MOT IVE OR ACTIVITY OF THE TRUST, THE TEST LAID DOWN IN THE JUDGMENT OF THE SUPREME COURT IN THE CASE OF ADDL. CIT V. SURAT ART SILK CL OTH MANUFACTURERS ASSOCIATION [1980] 121 ITR 1 / [1979] 2 TAXMANN 501 WOULD APPLY. V) THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON THE FAC TS WHILE REJECTING APPELLANTS CONTENTION THAT THE SUM OF RS . 236823750/- RECEIVED AS INFRASTRUCTURE SUBSIDY FROM BCCI, BEING OF CAPITAL NATURE AND SHOWN AS CAPITAL RECEIPT IN BALANCE SHEE T, WAS WRONGLY TAXED BY ASSESSING OFFICER CONSIDERING IT A S A PART OF REVENUE RECEIPT FOR THE YEAR. VI) THE LD. CIT(A) HAS IGNORED THE PROVISIONS OF SECTIO N 11(1)(D) WHILE CONFIRMING INCLUSION OF RS. 236823750/- BY TH E LD. ASSESSING OFFICER, IN REVENUE RECEIPTS FOR THE YEAR . HE HAS ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 6 COMPLETELY OVERLOOKED THE FACT THAT SAID GRANT WAS GIVEN TO APPELLANT BY BCCI SPECIFICALLY FOR BUILDING OF A NE W STADIUM. VII) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) H AS ERRED IN LAW AND ON THE FACTS WHILE REJECTING APPELLANTS CO NTENTION THAT THE SUM OF RS. 1505000/- RECEIVED AS ONE TIME ENTR ANCE FEE FROM NEW MEMBERS AND SHOWN AS CAPITAL RECEIPT IN BA LANCE SHEET WAS WRONGLY TAXED BY ASSESSING OFFICER CONSID ERING IT AS A PART OF REVENUE RECEIPT FOR THE YEAR. VIII) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) H AS IGNORED THE PROVISIONS OF SECTION 11(1)9D) AWHILE CONFIRMIN G INCLUSION OF RS. 1505000/- IN REVENUE RECEIPT FOR THE YEAR. HE HAS COMPLETELY OVERLOOKED THE FACT THAT THE SAID AMOUNT IS A PART OF THE CORPUS FUND OF APPELLANT. IX) THAT THE APPELLANT CRAVES LEAVE TO ALTER, ADD OR DE LETE ANY GROUNDS OF APPEAL. ITA NO. 762/CHD/2017 (A.Y. 2012-13) :- I) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) H AS ERRED IN FACTS AND LAW IN CONFIRMING THE CONCLUSION DRAWN BY THE LD. AO THAT THE ACTIVITIES OF THE APPELLANT, I.E. HOLDING OF MATCHES, SALE OF MATCH TICKETS, RECEIPT FROM BOOKING OF CORPORATE BOXES BY COMPANIES, RECEIPT OF IPL SUBVENTION FROM BCCI, INC OME FROM CLUB FACILITIES, RECEIPT FROM SPONSORS ETC, ARE OF COMMERCIAL NATURE AND HENCE THE APPELLANT IS NOT ELIGIBLE FOR EXEMPTION U/S 11 & 12 AS IT IS HIT BY THE FIRST PROVISO TO SECTIO N 2(15) OF THE INCOME TAX ACT, 1961. THE DENIAL OF DEDUCTION U/S 1 1 & 12 OF THE INCOME TAX ACT, 1961 ON THIS ACCOUNT, MERITS TO BE SET ASIDE. II) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) H AS ERRED IN FACTS AND LAW IN CONFIRMING THE CONCLUSION DRAWN BY THE LD. AO THAT THE RENDERING OF SERVICES IN RESPECT OF INDIAN PREMIER LEAGUE CRICKET (IPL) BY THE APPELLANT IS A BUSINESS ACTIVITY AND HENCE IT NOT ELIGIBLE FOR EXEMPTION U/S 11 & 12 AS IT IS HIT BY THE FIRST PROVISO TO SECTION 2(15) OF THE INCOME TAX AC T, 1961. THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) AS WELL AS LD. AO ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 7 HAS FAILED TO APPRECIATE THE ARRANGEMENT OF CONDUCT ING INDIAN PREMIER LEAGUE CRICKET (IPL) MATCHES AGREED BETWEEN BCCI AND KINGS XI PUNJAB AND THE ROLE OF APPELLANT THERE IN. THEREFORE, THE CONCLUSIONS DRAWN ARE NOT SUSTAINABL E. III) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) H AS ERRED IN LAW AND ON THE FACTS IN NOT FOLLOWING THE RATIO LAI D DOWN BY THE HON'BLE IT AT, BENCH 'A' JUDGMENT IN THE CASE OF M/ S. TAMIL NADU CRICKET ASSOCIATION V. DDIT (EXEMPTION) CHENNA I ITA NO. 1535,1536 & 1537/MDS/2014 DATED 14/08/2015, ON SIMILAR SET OF FACTS WITHOUT GIVING ANY REASON FOR THE SAME . IV) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) H AS ERRED IN LAW BY NOT FOLLOWING THE JUDGMENT OF HON'BLE PUNJAB & HARYANA HIGH COURT, IN CASE OF TRIBUNE TRUST V. COM MISSIONER OF INCOME TAX, CHANDIGARH [2016] 76 TAXMANN.COM 363 , IN WHICH THE HON'BLE COURT HAS HELD THAT EVEN AFTER TH E AMENDMENT OF SECTION 2(15) W.E.F. 2009, TO KNOW WHETHER THE I NCOME OF THE TRUST OR THE INSTITUTION IS ANCILLARY OR INCIDENTAL TO THE ATTAINMENT OF THE OBJECTS OR WHETHER IT IS THE PREDOMINANT MOT IVE OR ACTIVITY OF THE TRUST, THE TEST LAID DOWN IN THE JUDGMENT OF THE SUPREME COURT IN THE CASE OF ADDL. CIT V. SURAT ART SILK CL OTH MANUFACTURERS ASSOCIATION [1980] 121 ITR 1 / [1979] 2 TAXMANN 501 WOULD APPLY. V) THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON THE FAC TS WHILE REJECTING APPELLANTS CONTENTION THAT THE SUM OF RS . 947500/- RECEIVED AS ONE TIME ENTRANCE FEE FROM NEW MEMBERS AND SHOWN AS CAPITAL RECEIPT IN BALANCE SHEET WAS WRONGLY TAX ED BY ASSESSING OFFICER CONSIDERING IT AS A PART OF REVEN UE RECEIPT FOR THE YEAR. VI) THE LD. CIT(A) HAS IGNORED THE PROVISIONS OF SECTIO N 11(1)(D) WHILE CONFIRMING INCLUSION OF RS. 947500/- IN REVEN UE RECEIPTS FOR THE YEAR. HE HAS COMPLETELY OVERLOOKED THE FAC T THAT SAID AMOUNT IS A PART OF THE CORPUS FUND OF APPELLANT. T HE ADDITION MADE ON THIS ACCOUNT MERITS TO BE DELETED. ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 8 ITA NO. 763/CHD/2017 (A.Y. 2013-14) :- I) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) H AS ERRED IN FACTS AND LAW IN CONFIRMING THE CONCLUSION DRAWN BY THE LD. AO THAT THE ACTIVITIES OF THE APPELLANT, I.E. HOLDING OF MATCHES, SALE OF MATCH TICKETS, RECEIPT FROM BOOKING OF CORPORATE BOXES BY COMPANIES, RECEIPT OF IPL SUBVENTION FROM BCCI, INC OME FROM CLUB FACILITIES, RECEIPT FROM SPONSORS ETC, ARE OF COMMERCIAL NATURE AND HENCE THE APPELLANT IS NOT ELIGIBLE FOR EXEMPTION U/S 11 & 12 AS IT IS HIT BY THE FIRST PROVISO TO SECTIO N 2(15) OF THE INCOME TAX ACT, 1961. THE DENIAL OF DEDUCTION U/S 1 1 & 12 OF THE INCOME TAX ACT, 1961 ON THIS ACCOUNT, MERITS TO BE SET ASIDE. II) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) H AS ERRED IN LAW AND ON FACTS IN CONFIRMING THE DENIAL OF DEDUCT ION U/S 11 & 12, AND TREATING THE APPELLANT AS AOP & TAXING THE ENTIRE SURPLUS OF RS. 296343312/-, AS DONE BY THE LD. AO. III) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) H AS ERRED IN FACTS AND LAW IN CONFIRMING THE CONCLUSION DRAWN BY THE LD. AO THAT THE RENDERING OF SERVICES IN RESPECT OF INDIAN PREMIER LEAGUE CRICKET (IPL) BY THE APPELLANT IS A BUSINESS ACTIVITY AND HENCE IT NOT ELIGIBLE FOR EXEMPTION U/S 11 & 12 AS IT IS HIT BY THE FIRST PROVISO TO SECTION 2(15) OF THE INCOME TAX AC T, 1961. THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) AS WELL AS LD. AO HAS FAILED TO APPRECIATE THE ARRANGEMENT OF CONDUCT ING INDIAN PREMIER LEAGUE CRICKET (IPL) MATCHES AGREED BETWEEN BCCI AND KINGS XI PUNJAB AND THE ROLE OF APPELLANT THERE IN. THEREFORE, THE CONCLUSIONS DRAWN ARE NOT SUSTAINABL E. IV) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) H AS ERRED IN LAW AND ON THE FACTS IN NOT FOLLOWING THE RATIO LAI D DOWN BY THE HON'BLE IT AT, BENCH 'A' JUDGMENT IN THE CASE OF M/ S. TAMIL NADU CRICKET ASSOCIATION V. DDIT (EXEMPTION) CHENNA I ITA NO. 1535,1536 & 1537/MDS/2014 DATED 14/08/2015, ON SIMILAR SET OF FACTS WITHOUT GIVING ANY REASON FOR THE SAME . ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 9 V) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) H AS ERRED IN LAW BY NOT FOLLOWING THE JUDGMENT OF HON'BLE PUNJAB & HARYANA HIGH COURT, IN CASE OF TRIBUNE TRUST V. COM MISSIONER OF INCOME TAX, CHANDIGARH [2016] 76 TAXMANN.COM 363 , IN WHICH THE HON'BLE COURT HAS HELD THAT EVEN AFTER TH E AMENDMENT OF SECTION 2(15) W.E.F. 2009, TO KNOW WHETHER THE I NCOME OF THE TRUST OR THE INSTITUTION IS ANCILLARY OR INCIDENTAL TO THE ATTAINMENT OF THE OBJECTS OR WHETHER IT IS THE PREDOMINANT MOT IVE OR ACTIVITY OF THE TRUST, THE TEST LAID DOWN IN THE JUDGMENT OF THE SUPREME COURT IN THE CASE OF ADDL. CIT V. SURAT ART SILK CL OTH MANUFACTURERS ASSOCIATION [1980] 121 ITR 1 / [1979] 2 TAXMANN 501 WOULD APPLY. VI) THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) H AS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION ON ACCO UNT OF INTEREST OF RS. 9,39,46,624/- EARNED ON FIXED DEPOS IT MADE IN RESPECT OF ACCUMULATIONS MADE IN EARLIER YEARS AS P ER SECTION 11(5) OF I.T. ACT, 1961. 3. AT THE OUTSET, BOTH THE LD. REPRESENTATIVES OF T HE PARTIES HAVE SUBMITTED THAT THE SOLE AND THE COMMON ISSUE INVOLV ED IN ALL THE CAPTIONED APPEALS IS WHETHER THE ACTIVITIES OF THE APPELLANT / ASSESSEE ARE COMMERCIAL NATURE AND THUS ARE BEING HIT BY THE PROVISO TO SECTION 2 (15) OF THE INCOME TAX ACT, 1961 AND THEREFORE, WHE THER THE ASSESSING OFFICER (IN SHORT AO) WAS JUSTIFIED IN DISALLOWI NG THE CLAIM OF EXEMPTION TO THE ASSESSEE AS OTHERWISE AVAILABLE TO THE CHARITABLE INSTITUTIONS U/S 11 OF THE ACT. 4. THE UNDISPUTED FACTS OF THE CASE ARE THAT ARE AS SESSEE CRICKET ASSOCIATION IS A SOCIETY REGISTERED UNDER THE SOCIE TIES REGISTRATION ACT, 1860. IT WAS EARLIER GRANTED REGISTRATION U/S. 12A OF THE ACT WHICH WAS ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 10 CANCELLED BY COMMISSIONER OF INCOME TAX VIDE ORDER DATED 31.03.2009 AND THE CANCELLATION WAS MADE FROM ASSESSMENT YEAR 2009-10 ONWARDS IN VIEW OF THE AMENDED PROVISIONS OF SECTION 2(15) OF THE INCOME TAX ACT (IN SHORT 'THE ACT'). ON APPEAL BY THE ASSESSEE, TH E CO-ORDINATE CHANDIGARH BENCH OF THE TRIBUNAL SET ASIDE THE ORDE R OF THE COMMISSIONER OF INCOME TAX, AGAINST WHICH THE APPEA L OF THE DEPARTMENT IS PENDING BEFORE HON'BLE PUNJAB AND HAR YANA HIGH COURT. FURTHER, IN THE PROCEEDINGS RELATING TO THE ASSESSM ENT OF THE INCOME OF THE ASSESSEE, THE AO HELD THAT THE ACTIVITIES OF TH E ASSESSEE WERE NOT CHARITABLE IN NATURE IN VIEW OF THE AMENDED PROVISI ONS OF SECTION 2(15) OF THE ACT. HE, THEREFORE, DENIED THE CLAIM OF EXE MPTION FROM TAXATION TO THE ASSESSEE AS AVAILABLE TO THE CHARITABLE INST ITUTIONS UNDER SECTION 11 OF THE ACT. THE LD. CIT(A) UPHELD THE ORDER OF T HE AO. THE ASSESSEE THUS, HAS COME BEFORE US WITH THE CAPTIONED APPEALS FOR DIFFERENT ASSESSMENT YEARS. 5. BOTH THE LD. REPRESENTATIVES HAVE STATED THAT TH E IDENTICAL ISSUE AS INVOLVED IN THESE APPEALS HAS ALREADY BEEN DECIDED BY THIS BENCH OF THE TRIBUNAL IN THE APPELLANTS OWN CASE FOR THE ASSESS MENT YEAR 2010-11 IN ITA NO. 427/CHD/2017 VIDE ORDER DT 12.9.2019 REPORT ED IN [2019] 109 TAXMANN.COM 219 (CHANDIGARH-TRIB.), WHEREBY. THE IS SUE HAS BEEN DECIDED AGAINST THE ASSESSEE. THE LD. COUNSEL FOR T HE APPELLANTASSESSEE HAS FAIRLY ADMITTED THAT THE ISSUE INVOLVED IN THES E APPEALS, OTHERWISE, ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 11 HAS BEEN SETTLED BY THIS TRIBUNAL IN THE OWN CASE O F THE ASSESSEE FOR ASSESSMENT YEAR 2010-11(SUPRA). HOWEVER, HE HAS SUB MITTED THAT THE HONBLE GUJARAT HIGH COURT IN A BUNCH OF APPEALS W ITH THE LEAD CASE TITLED AS DIRECTOR OF INCOME TAX (EXEMPTION) VS G UJARAT CRICKET ASSOCIATION REPORTED IN 2019-TIOL-2457-HC-AHM-IT H AS DECIDED ALMOST IDENTICAL ISSUE INVOLVED THEREIN IN FAVOUR OF THE ASSESSEES THEREIN, UPHOLDING THE ORDER OF THE AHMEDABAD BENCH OF THE TRIBUNAL PASSED IN GROUP OF CASES WITH THE LEAD CASE GUJARA T CRICKET ASSOCIATION VS JOINT COMMISSIONER OF INCOME-TAX (EXEMPTIONS), AHMEDABAD REPORTED IN [2019] 101 TAXMANN.COM 453 (AHMEDABAD - TRIB.). THE LD. COUNSEL, THEREFORE, HAS SUBMITTED THAT THE ISSUE IN VOLVED IN THESES APPEALS MAY BE ACCORDINGLY DECIDED IN FAVOUR OF THE ASSESSEE. 6. THE LD. DR, ON THE OTHER HAND, HAS SUBMITTED THA T THE DECISION OF THE HONBLE GUJARAT HIGH COURT (SUPRA) CANNOT BE AP PLIED IN THESE APPEALS BECAUSE OF ENTIRELY DISTINGUISHABLE FACTS. SOME OF THE DISTINGUISHABLE FACTS INTER ALIA STRONGLY STRESSED BY THE LD. DR ARE ENUMERATED AS UNDER: (A) (I) THAT IN THE CASE OF GUJARAT CRICKET ASSOCIA TION & OTHERS, THE PLEA TAKEN BY THE ASSESSEE THEREIN WAS THAT THE AMOUNT RECEIVED BY THE RESPECTIVE CRICKET ASSOCIATIONS WA S A VOLUNTARY DONATION GIVEN BY THE BCCI TO THE SAID ASSOCIATIONS. THE RELIANCE WAS PLACED ON CONFIRMATI ONS / BCCI RESOLUTION NO 5 DATED 29TH SEPTEMBER 2001. ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 12 THE HONBLE HIGH COURT HELD THAT IN THE LIGHT OF TH E PROVISIONS OF SECTION 11(1)(D) OF THE ACT, ANY PAY MENT WHICH THE BCCI WAS NOT UNDER AN OBLIGATION TO MAKE, WHATEVER BE THE MODE OF ITS COMPUTATION, WAS A VOL UNTARY PAYMENT AND ANY SUCH PAYMENT WITH A SPECIFIC DIRECT ION THAT IT WAS FOR CORPUS FUND WAS A CORPUS DONATION TO THE STATE ASSOCIATIONS. THE HONBLE HIGH COURT, THEREFORE, WH ILE RELYING UPON THE BCCI RESOLUTION (SUPRA) AFFIRMED T HE FINDING OF THE TRIBUNAL THAT THE PAYMENTS MADE BY T HE BCCI TO THE STATE ASSOCIATIONS WAS IN THE NATURE OF CORP US DONATION. (II) THE LD DR HAS FURTHER SUBMITTED THAT IN THE CA SE OF GUJARAT CRICKET ASSOCIATION AND OTHERS, THE BCCI WAS NOT PR OVIDED WITH ANY OPPORTUNITY OF BEING HEARD EITHER AT THE T RIBUNAL LEVEL OR IN THE HIGH COURT. THAT, WHEREAS, IN THE CASE OF THE PRESENT ASSESSEE, I.E. PUNJAB CRICKET ASSOCIATION, DECIDED VIDE ORDER DATE D 12.09.2019 (SUPRA) THE BCCI HAS ALSO BEEN PROVIDED WITH THE OPPORTUNITY OF BEING HEARD WITH RESPECT TO THE CLAI M MADE BY THE PCA. (III) THAT THE BCCI IN ITS SUBMISSIONS HAS CATEGORI CALLY STATED THAT THE PAYMENT BY IT TO THE PCA WAS NOT GRACIOUS OR VOLUNTARY DONATION RATHER THE SAME WAS UNDER ITS OB LIGATION TO PAY TO THE STATE ASSOCIATIONS. THAT BCCI IN ITS BOOKS OF ACCOUNT HAS BOOKED THE AFORESAID PAYMENTS TO THE ST ATE ASSOCIATIONS AS EXPENDITURE OUT OF THE GROSS RECEIP TS. THAT ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 13 THE STATE ASSOCIATIONS ARE ENTITLED BY VIRTUE OF ES TABLISHED PRACTICE TO 70 PER CENT OF THE MEDIA RIGHT FEE. (IV) THE TRIBUNAL, THEREFORE, HAS OBSERVED THAT WHE N THE PAYER I.E. BCCI, ITSELF, HAS NOT RECOGNIZED THE PAYMENTS MADE BY IT TO STATE ASSOCIATIONS AS VOLUNTARY GRANTS OR DONATI ONS, RATHER THE BCCI HAS STRESSED THE PAYMENTS HAVE BEEN MADE T O THE STATE ASSOCIATIONS UNDER AN ARRANGEMENT ARRIVED WIT H STATE ASSOCIATIONS FOR SHARING OF THE REVENUES FROM INTER NATIONAL MATCHES AND IPL, THEN UNDER THE CIRCUMSTANCES, THE PAYEE OR TO SAY RECIPIENT ASSOCIATIONS CANNOT CLAIM THE RECE IPTS AS VOLUNTARY GRANTS OR DONATIONS AT DISCRETION FROM TH E BCCI. (V) THAT IN THE CASE OF PCA, IT HAS BEEN HELD BY TH E TRIBUNAL THAT FROM THE FACTS AND EVIDENCES ON THE FILE, IT I S APPARENT THAT THE ASSESSEE ASSOCIATION NOT ONLY BEING THE ME MBER OF THE BCCI WHICH IS THE AOP OF THE ASSESSEE ALONG WIT H OTHER MEMBERS, BUT ALSO, IS INDIVIDUALLY INVOLVED IN A SY STEMATIC AND REGULAR MANNER IN COMMERCIAL EXPLOITATION OF TH E POPULARITY OF CRICKET MATCHES AND ITS INFRASTRUCTUR E. THAT THE BCCI IN CLEAR TERMS HAS PLEADED THAT WITHOUT THE INVOLVEMENT OF STATE ASSOCIATIONS, THE CONDUCT OF T HE IPL MATCHES AND HUGE REVENUE GENERATION FROM THE SAME I S NOT POSSIBLE. THE ASSESSEE BEING PARTY TO THE TRIPARTIT E AGREEMENT IS ITSELF AN EVIDENCE OF THE ASSESSEE BEI NG COMMERCIALLY INVOLVED IN BCCI-IPL MATCHES. THAT THE TRIBUNAL;, THEREFORE HAS CONCLUDED THAT THOUGH, NO DOUBT, THE ASSESSEE IS ALSO ACTIVELY CONTRIBUTING TOWARDS THE PROMOTION AND POPULARITY OF THE CRICKET BUT AT THE SAME TIME ITS ACTIVITIES ARE ALSO CONCENTRATED FOR GENERATION AND ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 14 AUGMENTATION OF THE REVENUE BY EXPLOITING THE POPUL ARITY OF THE GAME AND TOWARDS MONOPOLISATION AND HAVING DOMI NANT CONTROL OVER THE CRICKET TO THE EXCLUSION OF OTHERS . THE COMMERCIAL EXPLOITATION OF THE POPULARITY OF THE GA ME AND THE PROPERTY/INFRASTRUCTURE HELD BY THE ASSESSEE IS NOT INCIDENTAL TO THE MAIN OBJECT BUT IS APPARENTLY AND INTER ALIA ONE OF THE PRIMARY MOTIVES OF THE ASSESSEE. (B) THAT IT HAS BEEN OBSERVED IN THE CASE OF PCA TH AT THE BCCI WHICH IS CONSTITUTED OF THE ASSESSEE AND OTHER STAT E ASSOCIATIONS HAS ACTED IN MONOPOLIZING ITS CONTROL OVER THE CRICKET AND HAS ALSO ADOPTED RESTRICTIVE TRADE PRAC TICE BY NOT ALLOWING THE OTHER ASSOCIATIONS WHO MAY POSE COMPET ITION TO THE BCCI TO HOLD AND CONDUCT CRICKET MATCHES FOR TH E SOLE PURPOSE OF CONTROLLING AND EXCLUSIVELY EARNING THE HUGE REVENUE BY WAY OF EXPLOITING THE POPULARITY OF THE CRICKET. THE ASSESSEE CRICKET ASSOCIATION BEING THE CONSTITU ENT MEMBER OF THE BCCI HAS ALSO ADOPTED THE SAME METHOD AND RULES OF THE BCCI FOR MAINTAINING ITS MONOPOLY AND COMPLETE DOMAIN OVER THE CRICKET IN THE 'AREA UNDER ITS CONT ROL'. THAT SUCH AN ACT OF EXCLUSION OF OTHERS CANNOT BE SAID T O BE PURELY TOWARDS THE PROMOTION OF GAME RATHER THE SAME CAN B E SAID TO BE AN ACT TOWARDS THE DEPRESSION AND REGRESSION OF THE GAME. THAT THE TRIBUNAL, THEREFORE, HAS OBSERVED TH AT THE CLAIM OF THE ASSESSEE THAT ITS ACTIVITY IS ENTIRELY AND PURELY FOR THE PROMOTION OF GAME CANNOT BE ACCEPTED. HOWEV ER, THESE FACTS ARE NOT A MATTER OF DISCUSSION IN THE C ASE OF GUJARAT CRICKET ASSOCIATION. (SUPRA) ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 15 (C) THAT THE TRIBUNAL IN THE CASE OF PCA HAS ALSO T AKEN NOTE OF THE REVISED CONSTITUTION OF THE ASSESSEE DONE IN CO MPLIANCE OF THE DIRECTIONS OF THE SUPREME COURT DATED 9-8-20 18 PASSED IN CIVIL APPEAL NO. 4235 OF CONNECTED MATTER , AS REVISED UP TO 11-8-2019 AND REGISTERED WITH REGISTR AR OF FIRMS AND SOCIETIES PUNJAB, THE OBJECTS OF THE PCA INTER ALIA, INCLUDE THE FOLLOWING: 'TO CARRY OUT ANY OTHER ACTIVITY WHICH MAY SEEM TO THE PCA CAPABLE OF BEING CONVENIENTLY CARRIED ON IN CONNECTION WITH THE ABOVE, OR CALCULATED DIRECTLY OR INDIRECTLY TO ENHANCE THE VALUE OR RENDER PROFITABLE OR GENERATE BETTER INCOME/REVENUE, FROM ANY OF THE PROPERTIES, ASSETS AND RIGHTS OF THE PCA;' THE TRIBUNAL THEREFORE HAS OBSERVED THAT THE ABOVE OBJECT REVEALS THAT NOW THE ASSESSEE'S ACTIVITIES INTER ALIA ARE ALSO D IRECTED FOR GENERATION AND AUGMENTATION OF REVENUE BY WAY OF EXPLOITATION OF ITS RIGHTS AND PROPERTIES. THE ASSESSEE IN THE EARLIER YEARS (BEFO RE THE INTRODUCTION OF THE ABOVE REVISED OBJECT) MIGHT HAVE CLAIMED THE AP PLICATION OF INCOME ON CAPITAL ASSETS/INFRASTRUCTURE AS APPLICATION FOR CHARITABLE PURPOSES. HOWEVER NOW WITH THE AMENDED OBJECTS, IT MAY EXPLOI T THE SO CREATED INFRASTRUCTURE FOR COMMERCIAL PURPOSES. THE TRIBUNA L, THEREFORE, HAS OBSERVED THAT IN ITS VIEW, THE INTRODUCTION OF THE ABOVE OBJECT HAS BROUGHT CLARITY ABOUT THE MANNER OF OPERATION AND A CTIVITIES OF THE ASSESSEE. ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 16 THAT, WHEREAS, THERE IS NEITHER ANY REFERENCE NOR A NY DISCUSSION ABOUT THE AMENDED OBJECTS, IF ANY, IN THE CASE OF GUJARAT CRICKET ASSOCIATION(SUPRA). 7. THE LD. COUNSEL FOR THE ASSESSEE AT THIS STAGE H AS FAIRLY ADMITTED THAT THE FACTS OF THE CASE OF THE ASSESSEE AS DISCU SSED IN ORDER DATED 12.9.2019 (SUPRA) WERE CLEARLY DISTINGUISHABLE AND THAT THE SPECIFIC FACTS AND EVIDENCES NOTED IN THE CASE OF THE ASSESSEE WER E NOT THERE EITHER BEFORE THE TRIBUNAL OR BEFORE THE HONBLE GUJARAT H IGH COURT IN THE CASE OF GUJARAT CRICKET ASSOCIATION (SUPRA). HE, THEREFO RE, CONCEDED THAT THE DECISION ARRIVED AT BY THE HONBLE GUJARAT HIGH COU RT IN THE CASE OF GUJARAT CRICKET ASSOCIATION CANNOT BE APPLIED AS SU CH IN THE CASE OF THE ASSESSEE. 8. AT THIS STAGE, THE ATTENTION OF THE LD. COUNSEL OF THE ASSESSEE HAS BEEN INVITED TO THE PROVISIONS OF SECTION 115TD OF THE ACT, SUB SECTION (1) CLAUSE (A) THEREOF STATES THAT WHERE IN ANY PRE VIOUS YEAR A TRUST OR INSTITUTION REGISTERED U/S 12AA OF THE ACT HAS CONV ERTED INTO ANY FORM WHICH IS NOT ELIGIBLE FOR GRANT OF REGISTRATION U/S 12AA, THEN IN ADDITION TO THE INCOME TAX CHARGEABLE FOR THE YEAR, THE ACCR ETED INCOME OF THE TRUST OR THE INSTITUTION AS ON THE SPECIFIED DATE S HALL BE CHARGED TO TAX AT THE MAXIMUM MARGINAL RATE ON THE ACCRETED INCOME. IT HAS BEEN FURTHER PROVIDED UNDER SUB SECTION (2) THAT THE ACCRETED IN COME FOR ABOVE PURPOSE MEANS THE AMOUNT BY WHICH THE AGGREGATE FAI R MARKET VALUE OF ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 17 THE TOTAL ASSETS AS ON THE SPECIFIED DATES EXCEEDS THE TOTAL LIABILITY OF SUCH TRUST OR INSTITUTION. FURTHER, UNDER SUB SECT ION (3) CLAUSE (II), A TRUST OR INSTITUTION SHALL BE DEEMED TO HAVE BEEN C ONVERTED INTO ANY FORUM NOT ELIGIBLE FOR REGISTRATION U/S 12AA IN A P REVIOUS YEAR IF IT HAS ADOPTED OR UNDERTAKEN MODIFICATION OF ITS OBJECTS W HICH DO NOT CONFORM TO THE CONDITION OF REGISTRATION. 9. THE LD. COUNSEL FOR THE ASSESSEE FAIRLY AGREED T HAT SINCE THE TRIBUNAL IN THE CASE OF THE ASSESSEE FOR AY 2010-11 HAS ALREADY MADE THE OBSERVATION THAT AS PER THE AMENDED OBJECTS OF THE ASSESSEE, NOW THE ASSESSEE'S ACTIVITIES INTER ALIA ARE ALSO DIREC TED FOR GENERATION AND AUGMENTATION OF REVENUE BY WAY OF EXPLOITATION OF I TS RIGHTS AND PROPERTIES. THE LD. COUNSEL, THEREFORE, HAS CONCED ED THAT IN VIEW OF THE PROVISIONS OF SECTION115TD OF THE ACT, THE ACCRETED INCOME OF THE ASSESSEE DUE TO THE EXEMPTION, IF ANY, GRANTED TO T HE ASSESSEE IN EARLIER YEARS BECOME TAXABLE IN VIEW OF THE AMENDED OBJECTS OF THE ASSESSEE, HENCE, EVEN IF THE CLAIM OF EXEMPTION IS ALLOWED TO THE ASSESSEE FOR THE ASSESSMENT YEARS UNDER CONSIDERATION THAT WILL NOT SERVE ANY USEFUL PURPOSE AS THE ASSESSEE IN THE SUBSEQUENT YEARS WIL L BE LIABLE TO PAY TAX ON SUCH ACCRETED INCOME. 10. THE COUNSEL, HOWEVER, HAS SUBMITTED THAT IN THE CASE OF THE ASSESSEE FOR AY 2010-11, THE TRIBUNAL INTER ALIA HA S HELD THAT SINCE THE BCCI IS BEING TREATED BY THE TAX AUTHORITIES AS AN 'AOP' ONLY AND THE ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 18 PAYMENTS MADE TO THE STATE ASSOCIATIONS AS DISTRIBU TION OF PROFITS, HENCE, UNDER THE CIRCUMSTANCES, THESE PAYMENTS BY THE BCCI TO THE STATE ASSOCIATIONS INCLUDING THE APPELLANT, HAVING ALREADY BEEN TAXED AT THE HANDS OF BCCI CAN NOT BE NOW TAXED IN THE HANDS OF THE MEMBER OF THE AOP I.E. THE APPELLANT STATE ASSOCIATION AS IT WILL AMOUNT TO DOUBLE TAXATION OF THE SAME AMOUNT. THE LD. COUNSEL, THERE FORE, HAS SUBMITTED THAT THE SAID FINDINGS MAY BE AFFIRMED IN THESE AP PEALS ALSO. SINCE, THE MATTER IN APPEALS UNDER CONSIDERATION IS SQUARELY COVERED WITH THE DECISION ARRIVED AT BY THIS TRIBUN AL IN THE OWN CASE OF THE ASSESSEE FOR AY 2010-11 VIDE ORDER DATED 12.09. 2019, HENCE, THE OBSERVATIONS MADE THEREIN AND THE FINDINGS ARRIVED AT BY THE TRIBUNAL VIDE ORDER DT 12.9.2019 WILL APPLY MUTATIS MUTANDIS TO THESE APPEALS OF THE ASSESSEE. THE CONCLUDING PART OF THE ORDER OF T HE TRIBUNAL DATED 12.9.2019, FOR THE SAKE OF READY REFERENCE IS REPRO DUCED AS UNDER: 42. UNDER THE CIRCUMSTANCES, THE APPELLANT CANNOT BE G RANTED EXEMPTION UNDER SECTION 11 OF THE ACT AS ITS ACTIVI TIES NO MORE FALL UNDER THE DEFINITION OF CHARITABLE PURPOSES AS PER THE PROVISIONS OF SECTION 2(15) OF THE ACT. IN VIEW OF THE DISCUSSION MADE ABOVE, THE AMOUNT PA ID BY THE BCCI TO THE APPELLANT WHICH HAS ALREADY BEEN TAXED AT THE H ANDS OF BCCI, CANNOT BE NOW TAXED IN THE HANDS OF THE MEMBER OF T HE AOP I.E. THE APPELLANT STATE ASSOCIATION AS IT WILL AMOUNT TO DO UBLE TAXATION OF THE SAME AMOUNT. HOWEVER, IF THE CLAIM OF THE BCCI FOR TREATING THE PAYMENTS MADE TO THE STATE ASSOCIATION AS DEDUCTIBL E EXPENDITURE IS ACCEPTED BY ANY HIGHER APPELLATE AUTHORITY IN ITS C ASE FOR THE YEAR UNDER CONSIDERATION, IT WILL BE OPEN TO THE ASSESSING OFF ICER OF THE APPELLANT TO REOPEN THE CASE OF THE APPELLANT AND TO DECIDE WHET HER THE SAID PAYMENTS RECEIVED FROM BCCI CAN BE TAXED AS INCOME OF THE APPELLANT WHICH WILL BE SUBJECT TO OUR OBSERVATIONS GIVEN ON OTHER ISSUES RAISED ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 19 IN THIS APPEAL. HOWEVER, THE INCOME RECEIVED BY THE APPELLANT/ASSESSEE OTHERWISE, EXCEPT THE CLUB INCOME, WHICH HAS NOT BE EN TAXED AT THE HANDS OF THE BCCI, WILL BE ASSESSED AS PER THE NORM AL PROVISIONS OF THE ACT. 43. HOWEVER, SO FAR AS THE INCOME FROM CLUB FACILITIES AND FROM CATERER IS CONCERNED, THE PLEA OF THE ASSESSEE IS THAT ALL THE ABOVE FACILITIES E.G. GYM, LAWN TENNIS, SWIMMING POOL ETC . ARE INTERCONNECTED AND INTERWOVEN WITH THE OBJECTS OF THE APPELLANT I.E. PROMOTION OF SPORT AND CANNOT BE VIEWED SEPARATELY. WITHOUT PREJUDICE TO A BOVE, IT HAS BEEN SUBMITTED THAT THE APPELLANT IS MAINTAINING SEPARAT E BOOKS OF ACCOUNT IN RESPECT OF ALL ABOVE CLUB ACTIVITIES. THAT THESE FA CILITIES ARE BEING PROVIDED ON THE PRINCIPLE OF MUTUALITY, ACCORDINGLY , THESE CANNOT BE TERMED AS TRADE, COMMERCE OR BUSINESS ACTIVITY. THA T THE RECEIPTS FROM THE CATERER FOR PROVIDING CATERING SERVICE DURING T HE MATCHES IS INTRINSICALLY LINKED WITH THE ACTIVITY OF ORGANIZIN G MATCHES AND TOURNAMENTS FOR THE PROMOTION OF CRICKET. IT HAS BE EN SUBMITTED THAT THE CLUB FACILITIES ARE BEING RUN FOR THE BENEFITS OF M EMBERS AND CRICKETERS AS PER THE OBJECTS OF THE SOCIETY ON THE PRINCIPLE OF MUTUALITY. HOWEVER, THE ASSESSING OFFICER OBSERVED THAT THE AS SESSEE EARNED HUGE INCOME OF RS. 123.03 LAKHS DURING THE YEAR FROM THE SE FACILITIES AND THIS INCLUDES A SUM OF RS. 14.97 LAKHS FROM CATERER . THAT THE ASSESSEE HOSTED THESE FACILITIES FOR THE PURPOSE OF RECREATI ON OR ONE TIME BOOKING FOR PARTIES, FUNCTIONS ETC. AND THESE WERE COMMERCI AL ACTIVITIES IN NATURE AS THE ASSESSEE WAS CHARGING FEES FOR PROVID ING THESE FACILITIES. 44. AFTER CONSIDERING THE RIVAL SUBMISSIONS, IN OUR VI EW, THIS ISSUE IS REQUIRED TO BE RE-EXAMINED BY THE ASSESSING OFFICER AFTER VERIFICATION OF THE ACCOUNTS OF THE ASSESSEE AS TO ASCERTAIN WHICH PART OF THE CLUB INCOME AND CATERING SERVICES HAS BEEN GENERATED FRO M THE MEMBERS OF THE ASSESSEE ASSOCIATION AND WHICH PART OF THE INCO ME IS EARNED FROM NON-MEMBERS. IT IS ALSO TO BE LOOKED INTO WHETHER T HE INCOME FROM THE CLUB HOUSE AND OTHER FACILITIES IS GENERATED GENERA LLY FROM THE MEMBERS ONLY AND THE RECEIPT FROM THE NON-MEMBERS IS AN EXC EPTION OR THE INCOME IS GENERATED FROM MEMBERS AND NON-MEMBERS IN NORMAL COURSE OF BUSINESS. WHETHER THE CATERING SERVICES ARE LIMI TED TO THE MEMBERS AND THEIR GUESTS ONLY OR THE SAME ARE ALSO PROVIDED TO NON-MEMBERS ALSO ON COMMERCIAL BASIS. THE ASSESSING OFFICER AFT ER THOROUGHLY EXAMINING THE ABOVE FACTS WILL DECIDE IF THE PRINCI PLE OF MUTUALITY APPLIES TO THE CLUB INCOME INCLUDING CATERING CONTR ACT IN ACCORDANCE WITH LAW. THIS ISSUE IS ACCORDINGLY RESTORED TO THE FILE OF THE ASSESSING OFFICER. 45. BEFORE PARTING, WE DEEM IT APPROPRIATE TO MENTION HERE THAT IN SOME OF THE CASE LAWS CITED BY THE LD. COUNSEL FOR THE A SSESSEE THE ISSUE REGARDING THE CHARITABLE NATURE IN THE CASE OF OTHE R STATE ASSOCIATIONS ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 20 HAS BEEN DECIDED IN FAVOUR OF THOSE ASSESSEES, HOWE VER, AFTER GOING THROUGH THE SAID DECISIONS, WITH DUE RESPECT TO THE SAID DECISIONS AND MOST HUMBLY WE ARE OF THE VIEW THAT THOSE DECISIONS ARE BASED ON THE FACTS PRESENTED BEFORE THE RESPECTIVE BENCHES IN TH OSE CASES. WHAT IS TO BE APPLIED FROM A DECISION HAVING PRECEDENTIAL VALU E IS THE PROPOSITION OF LAW LAID DOWN AFTER DISCUSSION ON CERTAIN BUNDLE OF FACTS. OUR FINDINGS ABOVE ARE BASED ON THE DISTINGUISHED AND S PECIFIC FACTS BROUGHT OUT AND EVIDENCES FURNISHED BEFORE US BY TH E PARTIES AND OUR FINDINGS MAY NOT BE TREATED IN ANY MANNER AS LAYING DOWN ANY CONTRARY PROPOSITION OF LAW TO THE DECISIONS CITED BY THE LD . COUNSEL FOR THE ASSESSEE. 46. IT IS ALSO MADE CLEAR THAT OUR OBSERVATIONS MADE A BOVE WILL NOT HAVE ANY BEARING AS SUCH ON ANY ADJUDICATION IN THE CASE S OF THE BCCI AND THAT THE BCCI WILL HAVE RIGHT AND LIBERTY TO CONTES T ITS CASES IRRESPECTIVE OF THE OBSERVATIONS GIVEN ABOVE AS OUR FINDINGS RESTS ON THE PLEADINGS OF THE PARTIES BEFORE US THOUGH, THE VIEW POINT OF THE BCCI HAS ALSO BEEN CONSIDERED AFTER GIVING DUE OPPORTUNI TY TO THE BCCI. THE FINDINGS / DIRECTIONS AS GIVEN VIDE ORDER DATED 12.09.2019 (SUPRA), AS REPRODUCED ABOVE, WILL BE APPLIED ACCORDINGLY IN THE CAPTIONED APPEALS. 11. THE APPEALS OF THE ASSESSEE ARE, THEREFORE, TRE ATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER COULD NOT BE PRONOUNCED EARLIER DUE TO NON-FU NCTIONING OF THE BENCH ON ACCOUNT OF CURFEW / LOCKDOWN IN THE WA KE OF COVID-19 PANDEMIC. ORDER PRONOUNCED ON 09.07.2020. SD/- SD/- ( # $ % &' / ANNAPURNA GUPTA) '( / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 09. 07.2020 .. ITA NOS. 760 TO763-CHD-2017 PUNJAB CRICKET ASSOCIATION, MOHALI 21 '+ ,-.- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , %2 , 34516 / DR, ITAT, CHANDIGARH 6. 157$ / GUARD FILE