Board of Control for Cricket in India v. ITO

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The Tax Publishers2012 TaxPub(DT) 2161 (Mum-Trib) : (2012) 136 ITD 0301 : (2012) 019 ITR (Trib) 0091 INCOME TAX ACT, 1961 --Charitable trust--Registration under section 12ARejection on the ground that amended deed not produced--Assessee was a society. The main object was to promote the game of cricket. The assessee was registered under section 12A with the DIT (Exemption) on 12-2-1996, based on the objects and bylaws of society. The assessee filed its return of income for the assessment year 2007-08. During the course of assessment proceedings for assessment year 2007-08, AO noticed that assessee society amended its memorandum and made amendments in the rules and regulations and that the same were not intimated to the IT Department for more than 3 years. During the course of hearing, certain queries were raised. Assessee replied and intimated the amendments made to its Memorandum and rules. The DIT, after considering the reply, passed the impugned order holding that - (i) when the objects of the institution, which were the basis of grant of registration were altered after grant of such registration, the very foundation of registration having been removed by the voluntary act of the assessee, the registration would not survive. (ii) The decision was with the assessee to apply for fresh registration by enclosing changed memorandum and rules so that the authority granting the registration, may apply his mind to come to a conclusion that the registration was to be granted or not. Assessee filed appeal against the impugned order. Revenue submitted that DIT had neither, cancelled the registration nor withdrawn the registration and that he has just intimated assessee of the consequences of the changes in the objects to the assessee. He contended that on such intimation could not lie under section 253. Held: The registration granted under section 12A, and the benefits flowing therefrom, could not be extended to the amended objects of the society unless the DIT (Exemption) examines the same and comes to a conclusion that the registration under section 12A, could be extended to the amended objects, memorandum and bye-laws. Thus, the assessee society should approach the registering authority with the changes and amendments so that the authorities may examine as to whether the amendments in question meet the requirement of law. Since the stand of the Revenue, was that the letter dated 18-11-2009, was only advisory in nature and was not an exercise of a statutory power and that it was not a withdrawal or cancellation of registration under section 12A, therefore, the appeal was not maintainable under section 253. Income Tax Act, 1961 Section 12A IN THE ITAT MUMBAI BENCH BJ. SUDHAKAR REDDY, A.M. & SATBEER SINGH GODARA, J.M. Board of Control for Cricket in India v. ITO IT Appeal No. 1285 (Mum) of 2010 30 March, 2012 Appellantby : P.J. Pardiwala and Nitesh Joshi, Respondent by : G.C. Srivastava, ORDER *J. Sudhakar Reddy, A.M.* This appeal preferred by the assessee, is directed against the impugned letter No. DIC(E)/under section 14A/2009-10/185 dated 28-12-2009, passed by the Director of Income-tax (Exemption), Mumbai, wherein the subject is regarding amendments to the Memoran'dum of Association made on 1-6-2006, as well as on 21-8-2007, informing regarding non-existence of registration under section 12A, of the Income-tax Act, 1961 (for short 'the Act'). Facts in brief:- 2. The assessee is a society duly registered under the Tamil Nadu Registration Act, 1975. The main object is to promote the game of cricket. The assessee was registered under section 12A of the Act with the Director of Income-tax (Exemption), Mumbai, (hereinafter for short 'DIT'), on 12-2-1996. The assessee filed its return of income for the assessment year 2007-08. During the course of assessment proceedings for assessment year 2007-08, the assessing officer noticed that the assessee society amended its memorandum and made amendments in the rules & regulations and that the same were not intimated to the Income-tax Department. For better appreciation of the facts in the present case, it is important to note the following inter-departmental and vice-versa correspondences exchanged between the assessee and the DIT as well. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2012 TaxPub(DT) 2161 (Mum-Trib) : (2012) 136 ITD 0301 : (2012) 019 ITR (Trib) 0091

INCOME TAX ACT, 1961

--Charitable trust--Registration under section 12ARejection on the ground that amended deed not produced--Assessee was a society. The main object was to promote the game of cricket. The assessee was registered under section 12A with the DIT (Exemption) on 12-2-1996, based on the objects and bylaws of society. The assessee filed its return of income for the assessment year 2007-08. During the course of assessment proceedings for assessment year 2007-08, AO noticed that assessee society amended its memorandum and made amendments in the rules and regulations and that the same were not intimated to the IT Department for more than 3 years. During the course of hearing, certain queries were raised. Assessee replied and intimated the amendments made to its Memorandum and rules. The DIT, after considering the reply, passed the impugned order holding that - (i) when the objects of the institution, which were the basis of grant of registration were altered after grant of such registration, the very foundation of registration having been removed by the voluntary act of the assessee, the registration would not survive. (ii) The decision was with the assessee to apply for fresh registration by enclosing changed memorandum and rules so that the authority granting the registration, may apply his mind to come to a conclusion that the registration was to be granted or not. Assessee filed appeal against the impugned order. Revenue submitted that DIT had neither, cancelled the registration nor withdrawn the registration and that he has just intimated assessee of the consequences of the changes in the objects to the assessee. He contended that on such intimation could not lie under section 253. Held: The registration granted under section 12A, and the benefits flowing therefrom, could not be extended to the amended objects of the society unless the DIT (Exemption) examines the same and comes to a conclusion that the registration under section 12A, could be extended to the amended objects, memorandum and bye-laws. Thus, the assessee society should approach the registering authority with the changes and amendments so that the authorities may examine as to whether the amendments in question meet the requirement of law. Since the stand of the Revenue, was that the letter dated 18-11-2009, was only advisory in nature and was not an exercise of a statutory power and that it was not a withdrawal or cancellation of registration under section 12A, therefore, the appeal was not maintainable under section 253.

Income Tax Act, 1961 Section 12A

IN THE ITAT MUMBAI BENCH

BJ. SUDHAKAR REDDY, A.M. & SATBEER SINGH GODARA, J.M.

Board of Control for Cricket in India v. ITO

IT Appeal No. 1285 (Mum) of 2010

30 March, 2012

Appellantby : P.J. Pardiwala and Nitesh Joshi,

Respondent by : G.C. Srivastava,

ORDER

J. Sudhakar Reddy, A.M.

This appeal preferred by the assessee, is directed against the impugned letter No. DIC(E)/under section 14A/2009-10/185 dated 28-12-2009, passed by the Director of Income-tax (Exemption), Mumbai, wherein the subject is regarding amendments to the Memoran'dum of Association made on 1-6-2006, as well as on 21-8-2007, informing regarding non-existence of registration under section 12A, of the Income-tax Act, 1961 (for short 'the Act').

Facts in brief:-

2. The assessee is a society duly registered under the Tamil Nadu Registration Act, 1975. The main object is to promote the game of cricket. The assessee was registered under section 12A of the Act with the Director of Income-tax (Exemption), Mumbai, (hereinafter for short 'DIT'), on 12-2-1996. The assessee filed its return of income for the assessment year 2007-08. During the course of assessment proceedings for assessment year 2007-08, the assessing officer noticed that the assessee society amended its memorandum and made amendments in the rules & regulations and that the same were not intimated to the Income-tax Department. For better appreciation of the facts in the present case, it is important to note the following inter-departmental and vice-versa correspondences exchanged between the assessee and the DIT as well.