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2017 (4) TMI 346 - AT - Income TaxClaim of the deduction u/s 11 declined - whether the assessee exist for purpose of earning profit and the applicant is not promoting sports on non-profit basis - Held that:- In the present case, material as placed before us suggests that the Assessing Officer is swayed by the figures and volume of receipts. Admittedly, such receipts are intermittent and not regular and also is dependent on the conduct of cricket match. It is not other way round that the cricket matches are dependent upon such activities. The undisputed facts are that the assessee is registered under the Rajasthan Sports (registration, recognition and regulation) Act 2005 and formed with the objective of promoting the sports of cricket within the state of Rajasthan so main objective or activity of the assessee is promotion of the cricket. The association is organizing tournament like Ranji Trophy, Irani Trophy, Dilip Trophy, Maharan Bhagwat Singh Trophy, Salim Durrani Trophy etc. the Assessing Officer has not doubted about these activities of the association. It is also brought to our notice that in the international one day match between south Africa and India, the association suffered deficits of ₹ 1.6 crores. RCA has also incurred in various other expenses with a view to promote the game of Cricket viz. on coaching camps of ₹ 20,40,360/-, state cricket activities of ₹ 1,08,60,566/-, Ground expense of ₹ 33,97,435/- and international tournament expenses of ₹ 2,09,16,911/-. These facts go to demonstrate that the assessee has been predominantly engaged into the activity of promoting cricket match. Case of Institute of Chartered Accountant vs Director General of Income Tax [2013 (7) TMI 205 - DELHI HIGH COURT] held that even though fee are charged by the petitioner Institute for providing coaching classes and holding interviews with respect of campus placement, the said activity cannot be stated to be rendering of service in relation to any trade, commerce or business as such activities are undertaken by the petitioner institute in furtherance of its main object which has held earlier are not trade, commerce or business. In the present case also the main activity of the assessee is conducting of the cricket match which falls under the category of general public utility. This fact is not disputed by the Revenue. All these activities an ancillary to the main activity. Therefore, we are of the considered view that the Assessing Officer was not justified in declining the exemption. - Decided in favour of assessee Depreciation on capital assets - Held that:- In computing the income of a charitable institution/trust depreciation of assets owned by such institution is a necessary deduction on commercial principles, hence, the amount of depreciation has to be deducted to arrive at the income available. See Commissioner of Income Tax vs. Krishi Upaz Mandi Samiti [2015 (3) TMI 11 - RAJASTHAN HIGH COURT]- Decided in favour of assessee Addition made on account of non-deduction of deduction of tax at source - Held that:- The appellant’s submission is that the TDS has been deposited before due date of filing the return. Since the amount has been deposited by due date, the disallowance appears to be uncalled for and is, accordingly, deleted.- Decided in favour of assessee Disallowance of expenses - Held that:- Once the assessee is able to prove the veracity all the expenditure same should not be disallowed merely on the basis of the conjecture. Therefore, we deemed it proper to restore this issue to the file of the assessee for decision afresh.
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