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TMI Blog2025 (4) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... claim of the assessee trust that the activities of the trust are that of Charitable Nature, and thereby invoking the provisions of amended Section 2(15) wc.101-04- 2009 without appreciating that the said action is not justified on facts and in law. 3. The learned CIT(A) failed to appreciate that the 12A registration of the assessee trust has duly been restore by the Honourable Pune ITAT vide its order dated 28.08.2014 and the said order has not been stayed by the Hon'ble Bombay High Court therefore, the assessee trust is eligible to claim benefit of section 11 and 12 of the Act. 4. The learned CIT(A) ought to have appreciated that in the subsequent assessment proceedings the Revenue has accepted the contention of the assessee trust and allowed exemption u/s 11 to 13 of the Act, therefore, in view of the principle of consistency the learned CIT(A) should have treated the assessee trust as charitable organization eligible for exemption. 5. The learned CIT(A) erred in sustaining the addition of Rs. 13,08,01,585 made by the A.O towards T.V. subsidy received from Board of Control for Cricket in India (BCCI) without appreciating that the said addition is not justified on facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iating that the said addition is not justified on fact and in law. 13. The leaned CIT(A) failed to appreciate that tournament receipts represents the reimbursement received from BCCI and entry fees received for various domestic tournaments conducted by the assessee trust and hence, the same should not be treated as commercial income of the assessee trust. 14. The learned CIT(A) erred in sustaining the addition of Rs. 2,97,30,982 made by the A.Ο in respect of capital subsidy received by the assessee trust from BCCI for the construction of Gahunje Stadium without appreciating that the said addition is not justified on facts and in law. 15. The learned CIT(A) erred in confirming the disallowance of deficit claim of Rs. 155,55,73,714 in respect of application of income without appreciating that the said action is justified on facts and in law. 16. The appellant craves, leave to add, alter, amend and delete any of the above grounds of appeal." 3. Briefly stated the facts are that the assessee is a charitable trust registered under the Bombay Public Trust Act and the Societies Registration Act, 1860. It also registered u/s 12A of the Income Tax Act, 1961 (the "Act") with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing carried out in a commercial manner and for profits." 3.2 In response to the above queries, the assessee filed its written submissions raising the following contentions in support of its claim: "a. Regarding the withdrawal of 12A Registration the assessee Trust has submitted that the withdrawal of Registration u/s 12A is bad in law and is required to be quashed and the Assessee Trust has filed an Appeal with Income Tax Appellate Tribunal, Pune Bench 'A' (ITA No. 1856/Pn/2012) against the Order for cancelation Registration u/s 12A of the Income Tax Act, 1961. The appeal is partly heard. Assessee Trust has relied on various judicial decisions in support of its claim and also submitted the copies of the same at the time of assessment proceedings. b. Regarding treating Capital Subsidies received for various Infrastructure developments, Gahunje Stadium Project as revenue receipts, the assessee Trust has submitted that the receipt for acquiring various Capital Assets are by very nature voluntary Capital Receipts and also submitted various judicial decision in support of its claim. c. Regarding Subsidy from BCCI, the Assessee Trust has submitted that it has no role to pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,382). d. Added tournament receipts from BCCI of Rs. 1,50,35,828/- as revenue receipt separately as liable for tax, though the these receipts are credited to Tournament Expenses Account." 4. Aggrieved, the assessee filed an appeal before the Ld. CIT(A) challenging the above action of the Ld. AO. The Ld. CIT(A) dismissed the appeal of the assessee by upholding the observations and findings of the Ld. AO in respect of each ground of the appeal raised by the assessee before him. The relevant observations and findings of the Ld. CIT(A) is reproduced below : "1. Ground no. 1 objects to assessing the income of the assessee at Rs. 157807807 without specifying any particular reason. 2. Ground no.2 disputes cancellation of registration u/s12A and disallowance of exemption under section 11 & 12. The AO brought the surplus in income and expenditure account because the registration u/s 12A is cancelled w.e.f 1st April 2009. The AO treated the assessee as AOP and adjudicated that since BCCI cannot claim benefits of section 12A, any receipts from BCCI is not eligible for exemption under section 11 to 13. The AO rightly considered the assessee as not carrying out any charitable activity. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal has decided the impugned issue in favour of the assessee wherein the Tribunal has set aside the order of the Ld. CIT(A) and restored the assessee's registration u/s 12A of the Act dated 09.12.1991. Consequent to the said order of the Tribunal, the Ld. CIT(E), Pune passed an order u/s 12AA(1)(b)(i) r.w.s. 254 of the Act, dated 09.01.2017 wherein it has been admitted that the assessee is considered to be continuously registered u/s 12A of the Act w.e.f. 09.12.1991. The Department's appeal against the said order of the Tribunal before the Hon'ble Bombay High Court is pending for adjudication till date. He, therefore submitted that since the decision of the Tribunal (supra) has not been stayed by the Hon'ble Bombay High Court, it still subsists. The Ld. AR contended that all the above facts were brought to the notice of the Ld. CIT(A) by the assessee during the appellate proceedings before him by filing detailed written submissions, however, the Ld. CIT(A) has adjudicated the matter without considering these facts available on record. He further submitted that the Ld. CIT(A) has failed to consider the decision of the Hon'ble Supreme Court in the case of Assistant Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We have perused the decision of the Hon'ble Supreme Court in AUDA's case (supra) wherein the Hon'ble Supreme Court has observed that "In each case and for every year, the tax authorities are under an obligation to carefully examine and see the pattern of receipts and expenditure and the party's contention in this regard are to be considered on their merits." This judgment of the Hon'ble Apex Court was available with the Ld. CIT(A) at the time of passing of his appellate order, however, it remained to be considered by him vis-à-vis the facts and merits of the assessee's case for the relevant AY 2011-12 under consideration. Thus, in our considered view, the issue(s) raised in various grounds of appeal by the assessee before us needs to be examined in light of the observations of the Hon'ble Supreme Court in AUDA's case (supra). We also find some force in the arguments of the Ld. AR that the Ld. CIT(A) has passed a non-speaking order by simply upholding the observations and findings of the Ld. AO without himself going into the merits of the case and has also failed to consider the detailed submissions made by the assessee before him in support of its claim. Considering the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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