TaxTMI 
TaxTMI 
2014 (3) TMI 298
X X X X Extracts X X X X
X X X X Extracts X X X X
....ted 27.07.2012 passed by the Income Tax Appellate Tribunal ("Tribunal", for short) for the assessment years 2003-04, 2004-05 and 2005-06. 2. For the sake of convenience the facts relating to the assessment year 2003-04 are taken as illustrative. The assessee filed its return of income on 24.08.2003 declaring Rs.nil as its income. Apparently the return was processed under Section 143(1) of the Act. Later the assessment was reopened under Section 148 of the Act and after scrutiny, an assessment order was framed under Section 143(3) of the Act in respect of the assessment year 2003-04. It would appear that in the return the assessee claimed its entire income to be exempt under Section 11 of the Act but the same was denied on the ground that....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the assessing officer who reiterated his view that the expenditure incurred by applying the income of the assessee on the activities for which it was constituted i.e. sports promotion, cannot be allowed as a deduction in the absence of any registration under Section 12(A) of the Act and further that the estimate of allowable expenditure at Rs.1,20,000/- made for possible expenditure incurred to collect the grants was fair and reasonable and nothing more was allowable. After obtaining the remand report the CIT (Appeals) placed it before the assessee for its comments. At that stage the assessee filed an additional ground for all the three years which is as follows: - "That the learned DDIT (E) has grossly erred both in law and on facts in....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... consistent with nature and extent of expenditure incurred by it in the past years. In fact, expenditure depends upon the number of sports events organized by the Board every year, therefore, the expenditure varies every year but its expenses are to promote sports for which PSPB is in existence. After perusal of details and information placed by the appellant, I hold that the appellant is entitled for claim of legitimate expenses incurred for sports activities and accordingly, the Assessing Officer is directed to allow the expenditure for the following years as per details given below and balance income can be taxed at the rate as applicable. Asstt. Year 2003-04 Rs.1,41,73,414.04 Asstt. Year 2004-05 Rs.1,25,51,863.35 Asstt....
X X X X Extracts X X X X
X X X X Extracts X X X X
....The CIT (Appeals) has actually not held so. He never examined the question whether the assessee was eligible for the exemption under Section 11 since there was no ground before him, taken by the assessee, to that effect. All that the assessee claimed before the CIT (Appeals) was that the entire expenditure should be allowed as a deduction since it was incurred for the very objects for which the assessee was established in 1979 i.e. promotion of sports and, therefore, the assessing officer was not justified in restricting the allowance of expenditure to Rs.1,20,000/- only for all the three years. It was this claim that was accepted by the CIT (Appeals). The objection of the learned standing counsel for the revenue that since the grants were ....