INCOME TAX ACT, 1961

Section 2(15), Proviso Section 11 Section 12

Charitable trust - Exemption under section 11 - Applicability of proviso to section 2(15) - Trade commerce or business

Assessees were circket associations, and registered under section 12AA and under Societies Registration Act. These cricket associations were engaged in promoting and developing the game of cricket, at different levels, in identified areas of the State of Gujarat. AO held that main income of the assessee was from entertainment of public by arranging national and international matches for a fee. The assessee was held to be carrying on the activity of advancement of other objects of general public utility and which was in the nature of business, trade and commerce. Therefore, the assessee was covered by the provisions of section 2(15) read with proviso 1 and 2. Revenue authorities thus held that exemption under section 11 was not allowable.Held; So far as the cricket associations were concerned, the allegations of the revenue authorities have no bearing on the denial of the status of 'charitable activities' in the hands of the cricket associations before Tribunal particularly as CIT had not been able to point out a single object of the assessee cricket associations which was in the nature of trade, commerce or business, and, as it was not even in dispute that the objects being pursued by the assessee cricket associations were 'objects of general public utility' under section 2(15). When proviso to section 2(15) cannot be invoked on the facts of these cases, the benefits of sections 11 and 12, which were declined only by invoking the proviso to section 2(15), could not have been declined on the facts of these cases.

Relied:Tamil Nadu Cricket Association v. Director of Income Tax (Exemptions) (2014) 360 ITR 633 (Mad) : 2014 TaxPub(DT) 0542 (Mad-HC), DIT v. Sabarmati Gaushala Trust (2014) 362 ITR 539 (Guj) : 2014 TaxPub(DT) 1964 (Guj-HC), Jalandhar Development Authority (2009) 124 TTJ 598 (Asr-Trib) : 2009 TaxPub(DT) 1794 (Asr-Trib),Improvement Trust v. CIT (2013) 30 Taxmann.com 58 (Asr-Trib) : 2014 TaxPub(DT) 2065 (Asr-Trib), Hoshiarpur Improvement Trust v. Asstt. CIT (2015) 155 ITD 570 (Asr) : 2015 TaxPub(DT) 3612 (Asr-Trib) and Tribune Trust v. CIT (2017) 390 ITR 547 (P&H) : 2017 TaxPub(DT) 0014 (P&H-HC). Distinguished:Cricket Association of Bengal v. CIT (1959) 37 ITR 277 (Cal) : 1959 TaxPub(DT) 0065 (Cal-HC) and Tamilnadu Cricket Association v. DIT (Exemptions) (2013) 32 Taxmann.com 50 (Chen-Trib) : 2013 TaxPub(DT) 0849 (Chen-Trib).

REFERRED : Gujarat State Cooperative Union v. CIT (1992) 195 ITR 279 (Guj) : 1992 TaxPub(DT) 1104 (Guj-HC), Lok Shiksha Trust v. CIT (1975) 101 ITR 234 (SC) : 1975 TaxPub(DT) 0344 (SC), DIT v. Ahmedabad Management Association (2014) 366 ITR 85 (Guj) : 2014 TaxPub(DT) 3378 (Guj-HC), Tamil Nadu Cricket Association v. Director of IT (Exemptions) (2014) 360 ITR 633 (Mad) : 2014 TaxPub(DT) 0542 (Mad-HC), Tamil Nadu Cricket Association v. Dy. Director of Income Tax (Exemptions) (2015) 42 ITR(T) 546 (Chen-Trib.) : 2015 TaxPub(DT) 3244 (Chen-Trib), CIT (Exemptions) v. Rajasthan Cricket Association (2018) 98 Taxmann.com 425 (Raj) : 2018 TaxPub(DT) 4927 (Raj-HC), Rajasthan Cricket Association v. Addl. CIT (2017) 79 Taxmann.com 464 (JP-Trib) : (2017) 164 ITD 212 (JP-Trib) : 2017 TaxPub(DT) 1839 (Jp-Trib), Maharashtra Cricket Association v. CIT (2015) 152 ITD 1 (Pune-Trib.) : 2015 TaxPub(DT) 0252 (Pune-Trib), Saurashtra Cricket Association v. CIT (2014) 148 ITD 58 (Rjt-Trib) : 2014 TaxPub(DT) 1312 (Rkt-Trib), Dy. Director of IT v. All India Football Federation (2015) 62 Taxmann.com 362 (Del-Trib.) : (2015) 43 ITR(T) 656 (Del) : 2015 TaxPub(DT) 4276 (Del-Trib), Dahisar Sports Foundation v. ITO (Exemptions)-(1), Mumbai (2017) 167 ITD 710 (Mum-Trib) : 2017 TaxPub(DT) 5100 (Mum-Trib), Ahmedabad Urban Development Authority v. ACIT (2017) 396 ITR 323 (Guj) : 2017 TaxPub(DT) 1863 (Guj-HC), CIT v. Gujarat Industrial Development Corporation (2017) 83 Taxmann.com 366 (Guj) : 2017 TaxPub(DT) 1934 (Guj-HC), Tribune Trust v. CIT (2017) 390 ITR 547 (P&H) : 2017 TaxPub(DT) 0014 (P&H-HC), Madras Sports Club v. DIT (2013) 30 taxmann.com 134 (Chennai) : 2013 TaxPub(DT) 0740 (Chen-Trib), Entertainment Society of Goa v. CIT (2013) 34 Taxmann.com 210 (Panaji) : 2013 TaxPub(DT) 1474 (Panaji-Trib), Punjab Seed Certification Authority v. CIT (2013) 37 Taxmann.com 81 (Chd-Trib), Bureau of Indian Standards v. DGIT (2013) 358 ITR 78 (Del) : 2013 TaxPub(DT) 0323 (Del-HC), Gujarat State Cooperative Union v. CIT (1992) 195 ITR 279 (Guj) : 1992 TaxPub(DT) 1104 (Guj-HC), Director of Income Tax (Exemptions) v. Ahmedabad Management Association (2014) 366 ITR 85 (Gujarat) : 2014 TaxPub(DT) 3378 (Guj-HC), Cricket Association of Bengal v. CIT (1959) 37 ITR 277 (Cal) : 1959 TaxPub(DT) 0065 (Cal-HC). Surat Art Silks Organisation v. CIT (1980) 121 ITR 1 (SC) : 1980 TaxPub(DT) 0848 (SC), Sole Trustee, Loka Shikshana Trust v. CIT (1975) 101 ITR 234 (SC) : 1975 TaxPub(DT) 0344 (SC), Institute of Chartered Accountants of India v. DGIT (2012) 347 ITR 99 (Delhi) : 2012 TaxPub(DT) 0253 (Del-HC), Mysore Minerals Ltd. v. CIT (1999) 239 ITR 775 (SC) : 1999 TaxPub(DT) 1421 (SC), Orissa State Warehousing Corporation v. CIT (1999) 237 ITR 589 (SC) : 1999 TaxPub(DT) 1252 (SC), CIT v. Podar Cement Pvt. Ltd. & Ors. (1997) 226 ITR 625 (SC) : 1997 TaxPub(DT) 1265 (SC), CIT v. Vegetable Products Ltd. (1973) 88 ITR 192 (SC) : 1973 TaxPub(DT) 0421 (SC) and CIT v. Naga Hills Tea Co. Ltd. (1973) 89 ITR 236, 240 (SC) : 1973 TaxPub(DT) 0427 (SC).

FAVOUR : In assessee's favour.

A.Y. : 2009-10 to 2014-15

INCOME TAX ACT, 1961

Section 4

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