9911796707
TMI Blog2024 (7) TMI 1335X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessee by the ld. CIT, Kanpur w.e.f. 27.12.2005. The assessee was also granted exemption u/s 12AA of the Act. The return declaring nil income was filed on 21.09.2010 after claiming exemption u/s 11/12 of the Act. The return was accompanied by audited copies of accounts in Form No.10B audited as per the provisions of section 12A(b) of the Act. The return was processed u/s 143(1) of the Act at the returned income on 20.04.2011. Later on, the case was taken up for compulsory scrutiny as per the norms laid down in Board's guidelines contained in the Action Plan for F.Y. 2011-12 and notice u/s 143(2) dated 01.09.2011 was issued fixing the date of compliance as 14.09.2011. Further notices u/s 143(2) and 142(1) along with questionnaire dated 31.08.2012 were issued requesting to make compliance of the queries given on the date fixed which was 20.09.2012. As per the Income and Expenditure Account, the total receipts has been shown at Rs. 29,52,56,009/- including interest income of Rs. 3,99,29,592/- and excess of income over expenditure has been shown at Rs. 4,23,17,761/-. During the year under consideration, the assessee has set apart Rs. 21,50,00,000/- u/s 11(2) and Rs. 3,79,38,24 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se exempt, has to be dealt with. In Lok Shikshana Trust (supra) this court has comprehensively addressed the scope of the term, and conclude that it would entail "scholastic" education: "5. The sense in which the word "education" has been used in Section 2(15) is the systematic instruction, schooling or training given to the young in preparation for the work of life. It also connotes the whole course of scholastic instruction which a person has received. The word "education" has not been used in that wide and extended sense, according to which every acquisition of further knowledge constitutes education. According to this wide and extended sense, travelling is education, because as a result of travelling you acquire fresh knowledge. Likewise, if you read newspapers and magazines, see pictures, visit art galleries, museums and zoos, you thereby add to your knowledge. Again, when you grow up and have dealings with other people, some of whom are not straight, you learn by experience and thus add to your knowledge of the ways of the world. If you are not careful, your wallet is liable to be stolen or you are liable to be cheated by some unscrupulous person. The thief who removes your ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hem. Furthermore, the state associations are the channels through which players are mostly selected, and get opportunities to participate in state, national and international level cricket. 228. As things stand, therefore, the state associations and BCCI are linked closely. The management of the game of cricket is structured in such a way that this link is apparent at every match or fixture of significance. In the course of conducting matches (which are scheduled by the BCCI as the national coordinating body), apart from amounts received towards sale of entry tickets, the state associations also receive advertisement money, sponsorship fee, etc. from the BCCI. Aside from these, media rights - i.e., broadcasting rights to each national or international event conducted at various locales owned by the state associations, and digital rights (all of which are exclusive, in nature) - are auctioned by BCCI. As noticed above, the BCCI, by its own admission, negotiates the terms on which media rights are sold, on behalf of the state associations: "For a Test series or ODI series conducted in multiple centers and organised by BCCI and multiple state associations, it was found that if eac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00/- Total Rs. 1,03,84,525/- 231. The details of the subsidy amounts received from BCCI for every match has been shown. This aggregates to over Rs. 41 lakhs. Furthermore, the details received towards the India-South Africa test fixture paid between 03.04.2008-04.04.2008 has been shown. GCA received Rs. 1,57,00,000/- towards sale of space; ticket sales yielded Rs. 27,57,700 and towards the head screen income, a sum of Rs. 3 lakhs was received. After deducting the expenditure, the excess income received for the year was Rs. 1,51,97,741/-. 232. In the case of Saurashtra Cricket Association, for the year ended on 31.03.2012, various heads of income have been disclosed. These include entry fees which is Rs. 5200 onwards. Interest of income received from Fixed Deposits was to the tune of Rs. 8,85,67,418/-; total amount of subsidy received from BCCI is Rs. 17,56,72,490/-. Of these, the overwhelming share is towards the IPL money collected by the BCCI - wherein Saurashtra Cricket Association's share worked out to a total of Rs. 17,16,32,490/-. 233. Apart from this, the BCCI also reimbursed to Saurashtra Cricket Association the sum of Rs. 73,73,911/-. The income and expendi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsidy from public funds are made to the assessee to assist him in carrying on his trade or business, they are trade receipts." This has later been followed in Commissioner of Income Tax v. Ponni Sugars 237. Recent trends have shown that media rights, especially broadcasting and digital media rights have yielded colossal revenues to the BCCI. The model adopted in the last 10 years or so has been to auction media rights in respect of events over a 3 or 5-year period. As discussed previously, these media rights are not per se owned by BCCI, which is but an association of persons or agglomerate of all the State Cricket Association. The stadia which form the venue for these cricket matches (in relation to which media rights are transferred or licensed) are owned by the State Cricket Associations. According to the BCCI itself, the State Associations can well bargain and enter into arrangements for the sale of such media rights. However, to obtain better terms, and gain bargaining leverage a centralized form of sale of such rights has been agreed and adopted by which the BCCI auctions these rights on behalf of the State Associations. All State Associations put together are entitled to ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
