INCOME TAX ACT, 1961

Section 11

Charitable trust - Exemption under section 11 - Grant of registration under section 12AA rejected -

Assessee had applied to CIT(E) for the registration of assessee's society under section 12AA. It had also produced books of account for verification and also submitted financials to support the claim that it was carrying out only charitable activity. CIT(E) had rejected the application of assessee for granting registration under section 12AA as per the findings and observations appearing in his order on record mostly because as per the view of CIT(E) that assessee was in receipts from the BCCI every year and these were in nature of trade, commerce or business as per proviso to section 2(15). Therefore, assessee was not carrying out any charitable activities Held: Assessee was receiving money from BCCI as subsidy for providing services in the IPL matches, for conducting Cricket matches for hiring ground only to promote the Cricket and encouraging new talent in the field of Cricket and objects of all the other Cricket associations of any other state are similar in nature. Therefore, assessee had not provided any services to any trade, commerce or industry as defined in the proviso to section 2(15) and it was not hit by proviso to section 2(15) since it did not conduct any service or activities which were in the nature of trade, commerce or business.

Followed:CIT v. Gujarat Maritime Board (2007) 295 ITR 561 (SC) : 2007 TaxPub(DT) 1557 (SC) Ahmedabad Rana Caste Association v. CIT (1971) 82 ITR 0704 (SC) : 1971 TaxPub(DT) 0389 (SC) Tax Practitioners Benevolent Fund v. CIT (2004) 266 ITR 561 (Bom) : 2004 TaxPub(DT) 0966 (Bom-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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