TMI Blog2021 (4) TMI 359X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is promoting cricket on the charitable basis as far as real beneficiary is concerned. Whenever the revenue is earned, the same is not on commercial lines and the same could be said to be earned without any commercial attributes. The revenue is generated for recovering the cost, at least partly if not in full In the aforesaid view of the matter, we are not convinced with the case put up by the Revenue. It is not the case of the Revenue that the objects of the Trust are not charitable, but the case of the Revenue is that the activities undertaken by the Association are not charitable in nature. Irrespective of the nature of the activities of the BCCI (commercial or charitable), what is pertinent for the purpose of determining the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout appreciating that the proviso to section 2(15) r.w.s. 13(8) of the Act is applicable to the assessee and therefore assessee is not eligible for claim of exemptions? [C] Whether on the facts and in the circumstances of the case and in law, the Hon ble Tribunal is justified in allowing exemption under section 11 of the Act on subsidy of ₹ 22,95,90,081/- received from BCCI, without appreciating that the proviso to section 2(15) r.w.s. 13(8) of the Act is applicable to the assessee and the assessee is not eligible for claim of exemptions? [D] Whether on the facts and circumstances of the case and in law, the Hon ble Tribunal was justified in remitting the addition made on account of infrastructure subsidy of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of Director of Income Tax V/s. Gujarat Cricket Association reported in 419 ITR Page 561 Gujarat . 3. This Court in case of Director of Income Tax V/s. Gujarat Cricket Association reported in 419 ITR Page 561 Gujarat in similar facts of this case has held as under : Held accordingly, (i) that it was not in dispute that the three associations had not distributed any profits outside the organisation. The profits, if any were ploughed back into the very activities of promotion and development of the sport of cricket and, therefore, the assessees could not be termed to be carrying out commercial activities in the nature of trade, commerce or business. It was not correct to say that as the assesses received a share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umerated in clause (d) of subsection (1) of section 11 was income in the form of voluntary contributions made with a specific direction that it shall form part of the corpus of the trust or institution. The fact that the donors had instructed that the interest earned shall be added to the corpus of the trust was not in dispute. There fore, the interest earned on the contributions already made by the donors would also partake of the character of income in the form of voluntary contributions made with a specific direction that they shall form part of the corpus of the trust. If that be so, the conclusion was irresistible that the Tribunal had rightly held that the interest earned would qualify for exemption under section 11(1)(d). (iii) ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
