Publishers Cricket League, New Delhi V. CIT(E), New Delhi

ITA 8673/DEL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8180 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: F
• Assessment Year: misc
• Appeal Filed On: 06-11-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUSHMA SINGH CONSOLIDATED
• Keywords: Set aside
• Section: 80G; 12AA

Judgement Text

ITA NOS.- 8672 AND 8673/DEL/2019. PUBLISHERS CRICKET LEAGUE PAGE 1 OF 7 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: F: NEW DELHI) BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NOS:- 8672 AND 8673/DEL/2019 PUBLISHERS CRICKET LEAGUE, NEW DELHI. VS. CIT(EXEMPTIONS). NEW DELHI. PAN NO: AADTP9857H APPELLANT RESPONDENT ASSESSEE BY : SHRI K. SAMPATH, ADV. REVENUE BY : SMT. SUSHMA SINGH, CIT(DR) CONSOLIDATED ORDER PER ANADEE NATH MISSHRA, AM (A) THE AFOREMENTIONED APPEALS BY THE ASSESSEE ARE TAK EN UP TOGETHER FOR THE SAKE OF CONVENIENCE AND BREVITY; AND ARE HEREBY DISPOSED OF F THROUGH THIS CONSOLIDATED ORDER. GROUNDS TAKEN IN BOTH THESE APPEALS OF ASSESSEE ARE AS UNDER: ITA NO.- 8672/DEL/2019 1. LD. CIT(EXEMPTION) DELHI IS NOT JUSTIFIED IN LA W AND FACTS AND CIRCUMSTANCES OF THE CASE IN REJECTING APPLICATION MADE FOR THE REGI STRATION U/S 12AA. 2. LD. CIT(EXEMPTION) DELHI IS ERRED IN HOLDING THA T THE ACTIVITIES CARRIED OUT BY THE TRUST IS IN NATURE OF ENTERTAINMENT EXTRAVAGANZ A PIGGYRIDING THE CRICKET MATCHES AND ADMITTEDLY FOLLOWED THE PATTERN IF IPL. ITA NOS.- 8672 AND 8673/DEL/2019. PUBLISHERS CRICKET LEAGUE PAGE 2 OF 7 3. LD. CIT (EXEMPTION) IS ERRED IN STATING THAT PAR TICIPANT IN THE PCL BY THE MEMBER PUBLISHING HOUSES AS WELL AS THE SPONSORS EN GAGED IN ANCILLARY BUSINESS, PROVIDED A FORUM FOR ADVERTISEMENT AND IN TENDED FOR PROMOTION OF BUSINESS OF THE PARTICIPANTS. 4. LD. CIT (EXEMPTION) IS ERRED IN STATING THAT APP LICANT NEITHER FILED REQUISITE DETAIL NOR SUBMITTED ANY EVIDENCE TO SHOW CHARITABL E ACTIVITY, THE CHARITABLE AND RELIGIOUS NATURE OF THE OBJECTIVES AND GENUINEN ESS OF THE ACTIVITIES OF THE TRUST OR INSTITUTION CANNOT BE ESTABLISHED HENCE AP PLICATION IS REJECTED. 5. LD. CIT (EXEMPTION) IS ERRED IN STATING THAT TRU ST IS NOT TAKING REGULAR SPORTS ACTIVITY INTENDED TO IMPROVE HEALTH OF PARTICIPANT. IT IS GROSSLY ERRED BY STATING THAT PUBLISHERS WILL GET ADVERTISEMENT AND WILL PRO MOTE BUSINESS THROUGH THE TRUST. 6. ASSESSEE HAS EVERY RIGHT TO MAKE, ADD, DELETE, M ODIFY OR ALTER ANY GROUND OF APPEAL AT THE TIME OF HEARING. ITA NO.- 8673/DEL/2019 1. LD. CIT(EXEMPTION) DELHI IS NOT JUSTIFIED IN LAW AN D FACTS AND CIRCUMSTANCES OF THE CASE IN REJECTING APPLICATION MADE FOR CERTIFIC ATE U/S 80G(5)(VI) OF THE INCOME TAX ACT. 2. LD. CIT(EXEMPTION) DELHI IS ERRED IN HOLDING THA T THE ACTIVITIES CARRIED OUT BY THE TRUST IS IN NATURE OF ENTERTAINMENT EXTRAVAGANZ A PIGGYRIDING THE CRICKET MATCHES AND ADMITTEDLY FOLLOWED THE PATTERN IF IPL. 3. LD. CIT (EXEMPTION) IS ERRED IN STATING THAT PAR TICIPANT IN THE PCL BY THE MEMBER PUBLISHING HOUSES AS WELL AS THE SPONSORS EN GAGED IN ANCILLARY BUSINESS, PROVIDED A FORUM FOR ADVERTISEMENT AND IN TENDED FOR PROMOTION OF BUSINESS OF THE PARTICIPANTS. 4. LD. CIT (EXEMPTION) IS ERRED IN STATING THAT APP LICANT NEITHER FILED REQUISITE DETAIL NOR SUBMITTED ANY EVIDENCE TO SHOW CHARITABL E ACTIVITY, THE CHARITABLE AND RELIGIOUS NATURE OF THE OBJECTIVES AND GENUINEN ESS OF THE ACTIVITIES OF THE TRUST OR INSTITUTION CANNOT BE ESTABLISHED HENCE AP PLICATION IS REJECTED. 5. LD. CIT (EXEMPTION) IS ERRED IN STATING THAT TRU ST IS NOT TAKING REGULAR SPORTS ACTIVITY INTENDED TO IMPROVE HEALTH OF PARTICIPANT. IT IS GROSSLY ERRED BY STATING THAT PUBLISHERS WILL GET ADVERTISEMENT AND WILL PRO MOTE BUSINESS THROUGH THE TRUST. 6. ASSESSEE HAS EVERY RIGHT TO MAKE, ADD, DELETE, M ODIFY OR ALTER ANY GROUND OF APPEAL AT THE TIME OF HEARING. (B) VIDE IMPUGNED ORDER DATED 30.09.2019, THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTION) [LD. CIT(E), FOR SHORT) REJECTED AS SESSEES APPLICATION SEEKING REGISTRATION UNDER SECTION 12AA OF INCOME TAX ACT, 1961 (I.T. ACT, FOR SHORT) AS WELL ITA NOS.- 8672 AND 8673/DEL/2019. PUBLISHERS CRICKET LEAGUE PAGE 3 OF 7 AS THE ASSESSEES APPLICATION SEEKING APPROVAL UNDE R SECTION 80G OF I.T. ACT. THE ASSESSEES APPLICATION FOR REGISTRATION UNDER SECTI ON 12AA OF I.T. ACT WAS REJECTED BY THE LD. CIT(E) BY OBSERVING THAT THE APPLICANT HAD N OT FILED THE REQUISITE DETAILS NOR HAD SUBMITTED ANY EVIDENCE OR ACCOUNTS TO SHOW THE CHAR ITABLE ACTIVITIES; AND THAT THE CHARITABLE AND RELIGIOUS NATURE OF THE OBJECTIVES A ND GENUINENESS OF THE ACTIVITIES OF THE TRUST OR INSTITUTION CANNOT BE ESTABLISHED. THE AS SESSEES APPLICATION SEEKING EXEMPTION UNDER SECTION 80G OF I.T. ACT WAS ALSO REJECTED BY OBSERVING THAT THE CHARITABLE ACTIVITIES WAS NOT SUBSTANTIATED VIDE THE AFORESAID IMPUGNED ORDER DATED 30.09.2019. THESE TWO APPEAL BEFORE US HAVE BEEN FILED BY THE A PPELLANT AGAINST THE AFORESAID IMPUGNED ORDER DATED 30.09.2019 OF THE LD. CIT(E). (B.1) IN THE COURSE OF APPELLATE PROCEEDINGS IN INCOME T AX APPELLATE TRIBUNAL (ITAT, FOR SHORT), A COMMON PAPER BOOK PERTAINING TO THESE TWO APPEALS WAS FILED FROM THE ASSESSEES SIDE CONTAINING THE FOLLOWING PARTICULAR S: 1. COPY OF FORM NO. 10A AND 10G ALONGWITH RECEIPTS AND PAYMENT ACCOUNT, TRUST DEED AND ACTIVITIES 2. COPY OF NOTICE DATED 08.05.2019 3. COPY OF REPLY TO NOTICE DATED 22.06.2019 ALONGWI TH- I. NO OBJECTION CERTIFICATE ALONGWITH PROOF OF OWN ERSHIP II. STATEMENT OF ACCOUNT FOR THE YEAR CLOSED ON 31 .03.2019 III. DETAILS OF DONATION IV. DETAILS OF BANK ACCOUNT V. CERTIFIED COPY OF INSERTED CLAUSE 4. COPY OF SUBMISSIONS DATED 095.09.2019 ALONGWITH SUPPLEMENTARY DEED, RESOLUTION ETC. 5. COPY OF SUBMISSIONS DATED 14.09.2019 ALONGWITH I. LIST OF PLAYERS /TRAINERS II. CONFIRMATIONS TO DONATIONS RECEIVED UPTO 31.03 .2019 ITA NOS.- 8672 AND 8673/DEL/2019. PUBLISHERS CRICKET LEAGUE PAGE 4 OF 7 III. COPIES OF PAMPHLET OF DATE WISE EVENT IV. PHOTOGRAPHS OF DISTRIBUTION OF TROPHIES, WRITE UP ON THE EVENTS, TEAMS (PARTICIPANTS) OF MATCH AND INAUGURATION OF EVENT B Y SRI CHETAN SHARMA FORMER INDIAN PLAYER AND OTHER DIGNATORIES V. DETAILS OF EXPENDITURE CONDUCTING OF EVENTS. VI. PROVISIONAL BALANCE SHEET AND INCOME & EXPENDIT URE ACCOUNT FROM 01.04.2019 TO 31.07.20199 VII. DETAILS OF DONATION RECEIVED FROM 01.04.218 TO 31.03.2019 6. COPY OF FURTHER SUBMISSIONS DATED 14.09.21019 AL ONGWITH CIRCULAR NO. 395 DATED 24.09.1984 (C) AT THE TIME OF HEARING BEFORE US, THE LD. COUNSEL FOR ASSESSEE SUBMITTED THAT WHATEVER DETAILS AND DOCUMENTS WERE CALLED FOR BY T HE LD. CIT(E), WERE SUBMITTED TO HIM. HE TOOK US THROUGH THE PAPER BOOK TO SUBSTANT IATE THIS CONTENTION. HE ALSO DREW OUR ATTENTION TO PARAGRAPHS 1 AND 2 OF THE AFORESAI D IMPUGNED ORDER DATED 30.09.2019 OF THE LD. CIT(E) TO CONTEND THAT DOCUMENTS IN SUPPO RT OF CLAIM OF REGISTRATION UNDER SECTION 12AA OF I.T. ACT AND IN SUPPORT OF APPLICAT ION FOR APPROVAL UNDER SECTION 80G OF I.T. ACT WERE FILED BEFORE THE LD. CIT(E); AND THAT THE TRUST WAS FORMED WITH THE OBJECT OF BENEFIT OF PUBLIC, SUCH PURPOSES TO INCLUDE INTE RALIA RELIEF TO THE POOR, EDUCATION, MEDICAL RELIEF, ESTABLISHMENT OF RESEARCH CENTERS A ND THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY. LD. COUNSEL SUB MITTED THAT THE OBSERVATION OF THE LD. CIT(E), THAT THE ASSESSEE HAD NOT FILED THE REQUISIT E DETAILS NOR SUBMITTED ANY EVIDENCES OR ACCOUNTS TO SHOW THE CHARITABLE ACTIVITY; THAT T HE CHARITABLE AND RELIGIOUS NATURE OF THE OBJECTIVES AND GENUINENESS OF THE ACTIVITIES OF THE TRUST OR INSTITUTION CANNOT BE ESTABLISHED; AND THAT CHARITABLE ACTIVITY WAS NOT S UBSTANTIATED; ARE CONTRARY TO MATERIALS ON RECORD ESTABLISHED BY THE PAPER BOOK AND ALSO IN CONTRADICTION WITH PARAGRAPHS 1 AND 2 OF THE IMPUGNED ORDER DATED 30.09.2019 PASSED BY THE LD. CIT(E) HIMSELF. THE ITA NOS.- 8672 AND 8673/DEL/2019. PUBLISHERS CRICKET LEAGUE PAGE 5 OF 7 LD. COUNSEL FURTHER SUBMITTED THAT THE APPELLANT WO ULD HAVE FURNISHED ANY OTHER DETAILS OR DOCUMENTS ALSO, IF ANY SUCH REQUIREMENTS HAD BEE N PRESCRIBED BY THE LD. CIT(E). THE LD. COUNSEL FOR ASSESSEE ALSO SUBMITTED THAT EV EN AT THIS STAGE THE APPELLANT WAS READY TO FURNISH ANY FURTHER DETAILS OR DOCUMENTS T O THE LD. CIT(E) IF SUCH AN OPPORTUNITY IS PROVIDED. IN VIEW OF THE FOREGOING, THE LD. COUNSEL FOR ASSESSEE MADE A PRAYER TO RESTORE THE ISSUES IN DISPUTE IN BOTH THE APPEALS BEFORE US, TO THE FILE OF THE LD. CIT(E) FOR FRESH ORDER; SO THAT ANY FURTHER DET AILS OR DOCUMENTS, [IF REQUIRED BY THE LD. CIT(E)] MAY BE FURNISHED TO THE LD. CIT(E) FOR HI S SATISFACTION. THE LEARNED COMMISSIONER OF INCOME TAX (DEPARTMENTAL REPRESENTA TIVE) [LD. CIT(DR), FOR SHORT] AGREED WITH THE CONTENTION OF THE LD. COUNSEL FOR A SSESSEE THAT THE OBSERVATION OF THE LD. CIT(E) THAT THE ASSESSEE HAD NOT FILED THE REQUI SITE DETAILS NOR SUBMITTED ANY EVIDENCES OR ACCOUNTS TO SHOW THE CHARITABLE ACTIVI TY; THAT THE CHARITABLE AND RELIGIOUS NATURE OF THE OBJECTIVES AND GENUINENESS OF THE ACT IVITIES OF THE TRUST OR INSTITUTION CANNOT BE ESTABLISHED; AND THAT CHARITABLE ACTIVITY WAS NOT SUBSTANTIATED; ARE CONTRARY TO MATERIALS ON RECORD ESTABLISHED BY THE PAPER BOO K AND ALSO IN CONTRADICTION WITH PARAGRAPHS 1 AND 2 OF THE IMPUGNED ORDER DATED 30.0 9.2019 PASSED BY THE LD. CIT(E) HIMSELF. FURTHER, SHE EXPRESSED NO OBJECTION TO TH E ASSESSEES PRAYER TO RESTORE THE ISSUES IN DISPUTE IN BOTH THE APPEALS BEFORE US TO THE FILE OF THE LD. CIT(E) FOR FRESH ORDER; AND LEFT IT TO THE DISCRETION OF THE BENCH. (D) WE HAVE HEARD BOTH SIDES. WE HAVE ALSO PERUSED TH E MATERIALS AVAILABLE ON RECORD. THERE IS NO DISPUTE THAT THE OBSERVATION O F THE LD. CIT(E) THAT ASSESSEE HAD NOT FILED THE REQUISITE DETAILS NOR SUBMITTED ANY E VIDENCES OR ACCOUNTS TO SHOW THE ITA NOS.- 8672 AND 8673/DEL/2019. PUBLISHERS CRICKET LEAGUE PAGE 6 OF 7 CHARITABLE ACTIVITY; THAT THE CHARITABLE AND RELIGI OUS NATURE OF THE OBJECTIVES AND GENUINENESS OF THE ACTIVITIES OF THE TRUST OR INSTI TUTION CANNOT BE ESTABLISHED; AND THAT CHARITABLE ACTIVITY WAS NOT SUBSTANTIATED; ARE NOT ONLY CONTRARY TO MATERIALS ON RECORD ESTABLISHED BY THE PAPER BOOK, BUT AND ALSO IN CONT RADICTION WITH PARAGRAPHS 1 AND 2 OF THE IMPUGNED ORDER DATED 30.09.2019 PASSED BY THE L D. CIT(E) HIMSELF. THE APPELLANT HAS EXPRESSED WILLINGNESS TO FURNISH ANY FURTHER MA TERIALS OR EVIDENCES TO THE LD. CIT(E) FOR THE SATISFACTION OF THE LD. CIT(E) IF THE ISSUES IN DISPUTE ARE RESTORED TO THE FILE OF THE LD. CIT(E) FOR FRESH ORDER; AND THE LD. CIT(DR) HAS EXPRESSED NO OBJECTION TO THIS. IN VIEW OF THE FOREGOING, WE SET ASIDE THE AFORESAID IMPUGNED ORDER DATED 30.09.2019 OF THE LD. CIT(E) AND DIRECT HIM TO PASS FRESH ORDER(S) IN RESPECT OF THE ASSESSEES APPLICATION FOR REGISTRATION UNDER SECTI ON 12AA OF I.T. ACT AND IN RESPECT OF THE ASSESSEES APPLICATION FOR APPROVAL UNDER SECTI ON 80G OF I.T. ACT; IN ACCORDANCE WITH LAW; AFTER PROVIDING OPPORTUNITY TO THE ASSESS EE TO FURNISH ANY FURTHER MATERIALS OR EVIDENCES THAT THE LD. CIT(E) MAY FIND RELEVANT FOR DECIDING THE ISSUES REGARDING REGISTRATION UNDER SECTION 12AA OF I.T. ACT AND APP ROVAL UNDER SECTION 80G OF I.T. ACT. (E) IN THE RESULT, BOTH THE APPEALS BY THE ASSESSEE ARE PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 22/01/20. SD/- SD/- (H.S. SIDHU) (ANAD EE NATH MISSHRA) JUDICIAL MEMBER ACCOUN TANT MEMBER DATED: 22/01/20 POOJA/- ITA NOS.- 8672 AND 8673/DEL/2019. PUBLISHERS CRICKET LEAGUE PAGE 7 OF 7 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER