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2022 (7) TMI 435 - AT - Income TaxExemption u/s 11 - rejecting the application for registration u/s 12A - As alleged activities of the appellant fell under category of advancement of any other object of general public utility u/s 2(15) - HELD THAT:- Undoubtedly, the activities of the assessee are for the promotion of sporting activities. We find that whether the trust carrying on the sport activities is entitled to registration under Section 12AA of the Act or not. The objects of the trust placed before us at page no. 15 of the Paper Book shows that it is for the promotion of sport as well education, social, arts and cultural advancements. We find that this issue is squarely covered in favour of the assessee by the decision of the co-ordinate Bench [2022 (3) TMI 250 - ITAT MUMBAI] held that income derived from the sport activities are held to be charitable in nature. The co-ordinate Bench in that decision has followed the decision of Hon'ble Bombay High Court in the case of Director of Income-tax (Exemption) vs. Chembur Gymkhana [2012 (8) TMI 611 - BOMBAY HIGH COURT] - thus hold that the learned CIT (E) is not correct in holding that assessee is not eligible for registration under Section 12AA of the Act so far as the activities of the sports are concerned. Further in Assistant Commissioner of Income-tax (Exemptions) v. Surat District Cricket Association [2022 (5) TMI 540 - ITAT SURAT] it is held that Where predominant object of assessee-society was to promote cricket and other sports at State as well as at National level and receipts shown under income from other sources were from activities undertaken in furtherance of various sports, profit earning was not predominant purpose of assessee and thus, proviso to section 2(15) could not be invoked to decline benefit of section 11 of The Act . Thus at least assessee which is promoting Gymnastic Sports is entitled to Registration u/s 12 AA of The ACT. We set aside the order of the learned CIT holding that the sports and activities are following under the category of advancement of other object of general public utility. We also find that assessee is not given the address of the donors to the learned CIT (E). The CIT is also required to verify the activities of the trust at the time of granting of registration under Section 12AA of the Act. In view of this, we direct the assessee to submit the requisite details called for by the learned CIT (E) with respect to the activities of the trust. In view of this, the learned CIT (E) is directed to grant registration to the assessee under Section 2(15) of the Act holding that the objects of the assessee are charitable in nature. Further, he is also directed to examine the activities of the trust and decides the application of the assessee afresh.
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