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2020 (7) TMI 641 - AT - Income TaxExemption u/s 11 and 12 - Charitable activity u/s 2(15) - activities of the appellant, i.e. holding of matches, sale of match tickets, receipt from booking of corporate boxes by companies, receipt of IPL subvention from BCCI, income from club facilities, receipt from sponsors etc - whether activities of the appellant, i.e. holding of matches, sale of match tickets, receipt from booking of corporate boxes by companies, receipt of IPL subvention from BCCI, income from club facilities, receipt from sponsors etc,services in respect of Indian Premier League cricket (IPL) by the appellant is a business activity and hence it not eligible for exemption u/s 11 & 12? - HELD THAT:- in view of the provisions of Section115TD of the Act, the accreted income of the assessee due to the exemption, if any, granted to the assessee in earlier years become taxable in view of the amended objects of the assessee, hence, even if the claim of exemption is allowed to the assessee for the assessment years under consideration that will not serve any useful purpose as the assessee in the subsequent years will be liable to pay tax on such accreted income. Double taxation of income in the hands of BCCI and Assessee, as the member of AOP - Held that:- As decided in [2019 (9) TMI 681 - ITAT CHANDIGARH] amount paid by the BCCI to the appellant which has already been taxed at the hands of BCCI, cannot be now taxed in the hands of the member of the AOP i.e. the appellant State Association as it will amount to double taxation of the same amount. if the claim of the BCCI for treating the payments made to the State Association as deductible expenditure is accepted by any higher appellate authority in its case for the year under consideration, it will be open to the assessing officer of the appellant to reopen the case of the appellant and to decide whether the said payments received from BCCI can be taxed as income of the appellant which will be subject to our observations given on other issues raised in this appeal - income received by the appellant/assessee otherwise, except the club income, which has not been taxed at the hands of the BCCI, will be assessed as per the normal provisions of the Act. So far as the income from club facilities and from caterer this issue is required to be re-examined by the Assessing officer after verification of the accounts of the assessee as to ascertain which part of the club income and catering services has been generated from the members of the assessee association and which part of the income is earned from non-members. It is also to be looked into whether the income from the club house and other facilities is generated generally from the members only and the receipt from the non-members is an exception or the income is generated from members and non-members in normal course of business. Whether the catering services are limited to the members and their guests only or the same are also provided to non-members also on commercial basis. The Assessing officer after thoroughly examining the above facts will decide if the principle of mutuality applies to the club income including catering contract in accordance with law. This issue is accordingly restored to the file of the Assessing officer. The findings / directions as given vide order dated 12.09.2019 (supra), will be applied accordingly in the captioned appeals. Appeals of the assessee partly allowed for statistical purposes.
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