DEPUTY COMMISSIONER OF INCOME TAX CIRCLE (EXEMPTION) NAGPUR , Nagpur V. M/S VIDARBHA CRICKET ASSOCIATION, Nagpur

ITA 94/NAG/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5387 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 23-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: U U KASAR JT
• Keywords: Question of law
• Section: 143(3); 12AA; 12; 11

Judgement Text

UKXIQJ , UKXIQJ IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR . , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO.94/NAG/2018 / ASSESSMENT YEAR : 201415 DCIT, CIRCLE (EXEMPTION), NAGPUR. ....... / APPELLANT / V/S. M/S. VIDARBHA CRICKET ASSOCIATION, CIVIL LINES, NAGPUR-440001. PAN : AAAAV3410C / RESPONDENT REVENUE BY : SHRI U. U. KASAR, JT. CIT ASSESSEE BY : SHRI K. P. DEWANI, ADV. / DATE OF HEARING : 28.03.2019 / DATE OF PRONOUNCEMENT : 24.04.2019 / ORDER PER D. KARUNAKARA RAO, AM: THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A)-1, NAGPUR DATED 23.01.2018 FOR THE ASSESSMENT YEAR 2014-15. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER :- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, EVEN THOUGH THE ASSESSEE WAS GRANTED REGISTRATION U/S. 12AA OF THE 2 ITA NO.94/NAG/2018 I.T. ACT, WHETHER THE CIT(A) WAS RIGHT IN ALLOWING THE BENEFIT OF SEC.11 & 12 TO THE ASSESSEE, PARTICULARLY SINCE THE PROVISO TO SEC.2(15) OF THE I.T. ACT WAS APPLICABLE IN THE ASSESSEES CASE, AS THE ASSESSEE WAS INVOLVED IN CARRYING OUT COMMERCIAL ACTIVITIES? 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, WHETHER THE DECISION OF THE CIT(A), OF ALLOWING EXEMPTION U/S.11 TO THE ASSESSEE DISREGARDING THE APPLICABILITY OF THE PROVISO TO SEC.2(15) OF THE ACT IN THE CASE OF THE ASSESSEE, WAS RIGHT CONSIDERING THAT THE BOMBAY HIGH COURT IN AN EXACTLY SIMILAR CASE (OF M/S. MUMBAI CRICKET ASSOCIATION, IN ITA NO.221 OF 2013) HAS ADMITTED A SIMILAR SUBSTANTIAL QUESTION OF LAW, WHICH IS STILL PENDING FOR DECISION? 3. BRIEFLY STATED THE RELEVANT FACTS INCLUDE THAT THE ASSESSEE IS A CRICKET ASSOCIATION AND ENGAGED IN PROMOTION OF SPORTS. THE ASSESSEE FILED THE RETURN OF INCOME DECLARING NIL INCOME. AT THE END OF THE ASSESSMENT U/S 143(3) OF THE ACT, THE ASSESSING OFFICER, AFTER REJECTING THE CLAIM OF EXEMPTION U/S 11 OF THE ACT, ASSESSED THE TOTAL INCOME OF THE ASSESSEE AT RS.29,74,18,132/-. THE CIT(A) GRANTED RELIEF TO THE ASSESSEE AND DIRECTED THE ASSESSING OFFICER TO ALLOW THE CLAIM OF EXEMPTION U/S 11(1) OF THE ACT. 4. AGGRIEVED WITH THE SAID DECISION OF THE CIT(A), THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL WITH THE ABOVE EXTRACTED GROUNDS. 5. BEFORE US, AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE BROUGHT OUR ATTENTION TO THE GROUNDS AND SUBMITTED THAT SIMILAR ISSUES WERE RAISED BEFORE THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE EARLIER 3 ITA NO.94/NAG/2018 ASSESSMENT YEARS I.E. A.YS. 2009-10 TO 2013-14 VIDE ITA NOS.500 TO 504/NAG/2016, ORDER DATED 07.03.2018 AND THE TRIBUNAL WAS GRANTED RELIEF TO THE ASSESSEE. 6. ON EXAMINING THE FACTS AS WELL AS THE ISSUES RAISED BEFORE US, WE FIND THE SIMILAR ISSUES RELATING TO THE ALLOWABILITY OF EXEMPTION U/S 11 OF THE ACT WAS EXAMINED BY THE TRIBUNAL AND THE SAME WAS ALLOWED ON SIMILAR FACTS IN FAVOUR OF THE ASSESSEE. THE CONTENTS OF PARA 10 AND 11 OF THE ORDER OF THE TRIBUNAL (SUPRA) ARE RELEVANT IN THIS REGARD AND THE SAME ARE EXTRACTED HEREUNDER :- 10. ALTHOUGH THE DECISION OF HON'BLE MADRAS HIGH COURT IS IN RESPECT OF GRANT OF REGISTRATION U/S 12AA BUT THE RELEVANT OBSERVATIONS REPRODUCED ABOVE ARE VERY MUCH RELEVANT TO THE ISSUE BEFORE US. WE ALSO FIND THAT IN EARLIER YEARS ALSO IN ASSESSEE'S OWN CASE, HON'BLE BOMBAY HIGH COURT HAS AFFIRMED THE ORDERS OF THE TRIBUNAL ALLOWING THE ISSUE IN FAVOUR OF THE ASSESSEE I.E., FOR ASSESSMENT YEARS 2003-04 TO 2008-09 ALTHOUGH THE SAME IS PRIOR TO INTRODUCTION OF PROVISO TO SECTION 2(15) OF THE ACT. IN VIEW OF THE EARLIER YEAR'S DECISION OF HON'BLE BOMBAY HIGH COURT, WE ARE OF THE VIEW THAT AS REGARDS TO CHARITABLE ACTIVITY, THIS ASPECT IS COVERED. NO CONTRARY DECISION WAS BROUGHT TO OUR NOTICE DURING THE COURSE OF HEARING BY THE REVENUE. HENCE, RESPECTFULLY FOLLOWING THE DECISION OF COORDINATE BENCH OF ITAT, CHENNAI BENCH IN THE CASE OF TAMIL NADU CRICKET ASSOCIATION (SUPRA), WE ARE OF THE VIEW THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE AND HENCE, WE CONFIRM THE ORDER OF LEARNED CIT(A). THE APPEAL OF THE REVENUE IS DISMISSED . CONSEQUENTLY, ALL THE APPEALS OF THE REVENUE, WHICH ARE ON IDENTICAL ISSUE, ARE DISMISSED . 11. IN THE RESULT, ALL THE APPEALS OF THE REVENUE ARE DISMISSED. 4 ITA NO.94/NAG/2018 7. FOLLOWING THE PARITY OF REASONING, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A). CIT(A) RIGHTLY ALLOWED THE APPEAL OF THE ASSESSEE. THUS, THE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON 24 TH DAY OF APRIL, 2019. SD/- SD/- ( /VIKAS AWASTHY) ( . /D. KARUNAKARA RAO) / JUDICIAL MEMBER / ACCOUNTANT MEMBER UKXIQJ / NAGPUR; / DATED : 24 TH APRIL, 2019. SUJEET / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(A) 4. THE CIT 5. , , UKXIQJ , UKXIQJ / DR, ITAT, NAGPUR BENCH, NAGPUR. 6. / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , UKXIQJ / ITAT, NAGPUR.