TMI Blog2012 (7) TMI 903X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing expenditure, when the assessee is not registered u/s 12A and is not entitled for exemption u/s 11 and therefore only those expenses can be allowed which are admissible as per chapter IV of the Income Tax Act. 2. The relevant facts are that the assessee with objects to promote sports got itself registered under the Societies Registration Act. It was granted exemption by CBDT u/s 10(23C) of the Income Tax Act till assessment year 2002-03. The provisions u/s 10 (23C) of the Act was omitted, therefore, it was decided by the respondent to seek registration u/s 12A of the Income Tax Act from assessment year 2003-04 onwards. The respondent applied for registration u/s 12A of the Act in the month of August, 2003 from assessment year 2003 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. 4. Ld. AR on the other hand tried to justify the first appellate order. 5. Considering the above submission we find that before the authorities below the respondent had claimed exemption on application of its income on the basis that the amount has been spent on its object and activities for promoting sports. It was pointed out that till the assessment year 2002-03 it was enjoying exemption u/s 10(23C) of the Act and on omission of the provision u/s 10(23C) of the Act it had applied for registration u/s 12A of the Act, the same could not be allowed due to some technicalities . The appellant again filed application for registration which has been granted w.e.f. 1.4.2005. It was contended that entire sources at its command w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iture varies every year. We thus find that the Ld. CIT(A) has not given any benefit of exemption of income under the provisions of section 11 of the Act but considering the genuineness of the claimed expenses incurred on sports activities. It is not the case of the revenue that the expenses claimed was not legitimate or it was not incurred on the activities of sports for which the respondent has been constituted. The issues raised in the appeals preferred by the revenue are thus not tenable. The decision of Hon ble Supreme Court in the case of UP Forest Corporation vs. DCIT holding that registration of trust/ institution u/s 12A is a condition precedent for availing benefit u/s 11 12 of the Act is not applicable in the present case as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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