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2019 (5) TMI 1134 - AT - Income TaxExemption u/s 11 - Grant of registration u/s.12AA rejected - promotion of Cricket - charitable activity u/s 2(15) or not? - assessee are in receipts from the Board of Control for Cricket in India (BCCI) every year and these are in nature of trade, commerce or business as per proviso to section 2(15) of the Act and therefore, the assessee is not carrying out any charitable activities - HELD THAT:- The assessee is receiving money from BCCI as subsidy for providing services in the IPL matches, for conducting Cricket matches for hiring ground only to promote the Cricket and encouraging new talent in the field of Cricket and objects of all the other Cricket associations of any other state are similar in nature. Therefore, the assessee has not provided any services to any trade, commerce or industry as defined in the proviso to section 2(15) of the Act. The Hon’ble Apex Court in the case of CIT Vs. Gujarat Maritime Board reported [2007 (12) TMI 7 - SUPREME COURT] has held that if the primary purpose and the predominant object is for welfare of general public then the purpose would be charitable in nature. The assessee is not hit by the proviso to section 2(15) of the Act since it does not conduct any service or activities which are in the nature of trade, commerce or business. All the facts being examined vis-à-vis taking into consideration of judicial pronouncements placed before us and examining object of the assessee’s society provides that it is for charitable purpose for advancement of any other object of general public utility. As in the case of Ahmedabad Rana Caste Association Vs. Commissioner of Income Tax [1971 (9) TMI 8 - SUPREME COURT] wherein it has been held that the object of the trust may be charitable in nature and an object beneficial to a section of public is an object of general public utility. The section of public must be definite and identifiable and it is not necessary that the object should benefit the whole mankind. In the case of the assessee, since it is for promotion of Cricket, it may not be benefiting the entire mankind but those being benefited are definitely identifiable and they are sections of public. The work of the assessee society is to promote Cricket so as to bring forth new talents and provide opportunity to the people for representing the State as well as the Country. Therefore, the object of the assessee is for charitable purpose and nothing else - thus we set aside the order of the Ld.CIT(Exemption) and direct the Ld.CIT(Exemption) to grant registration u/s.12AA of the Act to the assessee society. - Decided in favour of assessee.
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