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2022 (1) TMI 631 - AT - Income TaxNature of receipt - Ex gratia payment voluntarily made by the BCCI - capital receipt not of the nature of income, as such, voluntary receipts are treated as capital in character - sole reason for bringing to tax a sum by the AO was that BCCI was not having registration u/s 12AA - HELD THAT:- We direct the A.O. to examine whether BCCI was having registration u/s 12AA of the I.T.Act for the relevant assessment year. If the A.O. is satisfied that BCCI was having registration for the relevant assessment year, necessarily the amount of ₹ 60 lakh cannot be taxed u/s 56(2)(vii) of the I.T.Act in view of 2nd proviso (g) to the said section. CIT(A) alternatively held that the amount is also taxable u/s 28(iv) - In the instant case, prima facie, the CIT(A) has not undertaken such an exercise. Moreover, it is settled position of law that for section 28(iv) to attract, the business or profession must have been carried on by the assessee at any time during the previous year (emphasis supplied). CIT(A) in the impugned order has stated that assessee was rendering services to BCCI during the year under consideration, however, he has not elaborated how assessee was rendering services to BCCI during the relevant assessment year. The assessee was paid ₹ 60 lakh as an ex gratia amount for having played cricket for his country - The assessee being a retired cricketer, prima facie, section 28(iv) of the I.T.Act will not have application. Therefore, in the interest of justice and equity, we are of the view that the case needs to be considered afresh by the A.O. Accordingly, all the issues raised in this appeal are restored to the files of the A.O. The A.O. is directed to examine afresh whether a sum of ₹ 60 lakh received by the assessee is taxable or not. Appeal filed by the assessee is allowed for statistical purposes.
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