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2019 (9) TMI 624 - AT - Income TaxExemption u/s.11(1)(d) - Revenue contended that, CIT(A) deleted the additions on Infrastructure subsidy received from BCCI denying exemption u/s.11(1)(d) of the Income Tax Act, 1961 on corpus donation without any 'specific direction' for the purpose - whether CIT(A) has erred in deleting the disallowance of 'Bogus Donation' claimed on account of expenses relating to Tournament & Trophy and Ranji Trophy without considering that the expenses could not be substantiated during the assessment proceedings. - HELD THAT:- These issues are covered in favour of the assessee by the decision of the Ranchi Bench of the Tribunal in the case of M/s. Jharkhand State Cricket Association vs. DCIT(E), Ranchi [2019 (3) TMI 1585 - ITAT RANCHI] as held that receipts from BCCI cannot be considered as income received from activities in the nature of trade, commerce or business. The pith and substance of the argument of the ld. D/R is that the nature of receipt in the hands of BCCI is business or commercial receipts on account of IPL Subvention, T.V. Rights etc. and where these receipts are shared with the state association on an 30:70 ratio basis, the nature of receipt does not change and it would be business receipts in the hands of the State Associations also. The allegation of revenue is that these receipts are couched in the form of subsidies. Disallowance u/ 69C - HELD THAT:- Addition cannot be sustained as the amounts in question were recorded in the books of accounts and are part of the income and expenditure account and the source of the expenditure has been disclosed in the books of account. Assessing Officer made quantum disallowance exceeding more than what was debited to the income and expenditure account. AO has mixed up the disallowance due to non deduction of TDS. When application of income is considered u/s 11 of the Act, disallowance u/s 40(a)(ia) of the Act, cannot be made for the impugned Assessment Year. no infirmity in this order of the ld. CIT(A) as explanation (iii) to Section 11(1) of the Act, was introduced by the Finance Act, 2018 only w.e.f. 01/04/2019. Thus, we uphold the order of the ld. CIT(A) as stated above - Decided against revenue Delay in filing Form No. 10 for setting apart funds u/s 11(2) - HELD THAT:- We find that this is not a case were a fresh claim has been made by the assessee. This is a case where there is a delay in filing intimation in Form No. 10, for the purpose of accumulation of funds. The Hon’ble Supreme Court in the case of CIT vs. Nagpur Hotel Owners’ Association [2000 (12) TMI 99 - SUPREME COURT] had held that Form No. 10 can be filed by the AO before the completion of assessment. - Decided against revenue
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