Appeal granted for cricket society to obtain charitable registration under section 12AA.

The Tribunal allowed the appeal of the assessee, directing the Commissioner to grant registration under section 12AA. The Tribunal found that the activities of the assessee society, focused on the promotion of cricket, were charitable in nature and not deemed as trade, commerce, or business under the proviso to section 2(15) of the Income Tax Act, 1961. The order was pronounced on the 15th day of May, 2019.

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Issues Involved:
1. Rejection of application for registration under section 12AA of the Income Tax Act, 1961.
2. Determination of whether the activities of the assessee society qualify as charitable under section 2(15) of the Act.
3. Applicability of the proviso to section 2(15) regarding activities in the nature of trade, commerce, or business.

Issue-wise Detailed Analysis:

1. Rejection of Application for Registration under Section 12AA:
The primary grievance of the assessee was the rejection of its application for registration under section 12AA by the Commissioner of Income Tax (Exemption). The assessee had applied for registration on 18.04.2017, providing all necessary details, explanations, and financials to support its claim of carrying out charitable activities. The Commissioner rejected the application, citing that the assessee received funds from the Board of Control for Cricket in India (BCCI), which were deemed to be in the nature of trade, commerce, or business as per the proviso to section 2(15) of the Act.

2. Determination of Charitable Activities under Section 2(15):
The assessee argued that its main object was the promotion of cricket in Chhattisgarh, including organizing coaching, conducting matches, and providing facilities for young and talented sportsmen. It was emphasized that the assessee did not charge fees from players or teams and funded its activities through grants from BCCI. The Tribunal noted that the primary purpose of the assessee was to promote cricket, which falls under the definition of "advancement of any other object of general public utility" as per section 2(15) of the Act.

3. Applicability of the Proviso to Section 2(15):
The Tribunal examined whether the assessee's activities could be considered commercial under the proviso to section 2(15). It was noted that the assessee's involvement in IPL matches was limited to maintenance and security arrangements, with no right to sell tickets or receive sponsorships. The Tribunal referred to similar cases, including Jharkhand State Cricket vs. DCIT and Deputy Commissioner of Income Tax vs. Tamil Nadu Cricket Association, where it was held that such activities did not constitute trade, commerce, or business. The Tribunal concluded that the assessee's activities were not commercial and thus not hit by the proviso to section 2(15).

Conclusion:
The Tribunal found that the objects of the assessee society were charitable in nature, focusing on the promotion of cricket. It was determined that the assessee's activities did not involve trade, commerce, or business, and therefore, the proviso to section 2(15) was not applicable. The Tribunal directed the Commissioner to grant registration under section 12AA to the assessee, allowing the appeal in favor of the assessee.

Order Pronounced:
The appeal of the assessee was allowed, and the order was pronounced on the 15th day of May, 2019.

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