2014 (1) TMI 1834 - AT - Income Tax

Revenue's Appeal Dismissed on A.Y. 2008-09 Registration & Exemptions

The ACIT Cir. 2, Nagpur Versus Vidarbha Cricket Association

The Revenue's appeal against the CIT(A)-I, Nagpur's order for A.Y. 2008-09, involving registration u/s. 12AA, income application for charitable purposes, ... Registration u/s. 12AA - Held that:- CIT(A) has allowed similar issues/grounds in favour of the assessee and the said orders have been confirmed by the Tribunal [2013 (2) TMI 854 - ITAT NAGPUR]. Issues Involved:- Appeal against order of CIT(A)-I, Nagpur, relating to A.Y. 2008-09.- Whether assessee is deemed to have been granted registration u/s. 12AA of the I.T.Act.- Examination of income application for charitable purposes.- Application of receipts for trust purposes under section 11(1)(a).- Expenditure on cricket coaching as charitable purpose.- Treatment of expenditure on new stadium at Jamtha for commercial purposes.- Benefit of exemption u/s. 11 and 12 of the Income tax Act, 1961.- Addition on account of development expenditure as capital in nature.Analysis:- The appeal was filed by the Revenue against the order of the CIT(A)-I, Nagpur, for A.Y. 2008-09. The Revenue raised multiple grounds challenging the decision of the CIT(A). These grounds included issues related to the grant of registration u/s. 12AA, examination of income application for charitable purposes, application of receipts for trust purposes, treatment of specific expenditures, and the benefit of exemption under sections 11 and 12 of the Income Tax Act, 1961.- The learned counsel for the assessee pointed out that similar issues had been decided in favor of the assessee in previous years by the CIT(A) and confirmed by the Tribunal in appeals for A.Y. 2006-07 and 2007-08. The Tribunal found no infirmity in the order of the CIT(A) for the year under consideration as the facts were similar to those of the earlier years. Consequently, the Tribunal did not see any reason to interfere with the findings of the CIT(A) and dismissed the appeal by the Revenue.- The Tribunal's decision was based on the consistency of the facts with previous years' cases and the lack of merit in the Revenue's appeal. By following the precedent set by earlier Tribunal orders and finding no discrepancies in the CIT(A)'s decision, the Tribunal upheld the order of the CIT(A) for the year in question. The appeal was ultimately dismissed, and the order was pronounced in the E-Court on January 22, 2014.This detailed analysis covers the various issues raised in the appeal and provides a comprehensive understanding of the Tribunal's decision in the case.