AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2014 (5) TMI 1065
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....ons 11 & 12, since the registration u/s 12AA of the Act was granted to the assessee vide order dated 19.06.08 by the Ld.DIT (E). The assessee had filed its return of income for the assessment year 2009-10 on 22.07.2009. Subsequently the return was taken up for scrutiny and the assessment was completed on 23.12.2011 wherein the Ld. Assessing Officer held that the activities of the assessee trust will fall under the last limb of the Sec 2(15) of the Act, viz., "advancement of any other objects of general public utility". Further on perusing the records, the Ld. Assessing Officer opined that the receipts of the assessee society was in the nature of trade, commerce, and business, thereby attracting the proviso to the amended section 2(15) of the Act. Thereafter the Ld. Assessing Officer denied the benefits of Section 11 and Section 12 of the Act to the assessee and assessed the income at Rs.64,37,150/-, because the aggregate value of receipts from the activities of the assessee trust exceeded the limit prescribed by the second proviso to Sec.2(15) of the Act. On appeal, the Ld. CIT (A) confirmed the order of the Ld. Assessing Officer by observing as under:- "The meaning or defi....
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....ed to be for their services rendered. iv) Rent on Monrai system -Rs 1,43,750/-: The Monrai is an electronic device which is essential to facilitate live telecast of the game of chess being played. The sets are owned by the assessee and are rented out to persons conducting chess tournaments. v) Title fees - Rs. 3,00,500/- The players are awarded their titles depending on their ranking from level of Grand Master of Chess to the cadres below. The other titles are International Master, FIDE Master, Candidate Master, International Arbiter Title and Senior Arbiter Title. The FIDE, Greece is paid the fees for awarding the titles. This previous year FIDE has been paid Rs. 9,40,925/- under this head. vi) Telecast charges - Doordarshan - Rs. 12,00,000: This sum is towards telecast charges received by the assessee for permitting telecast of chess tournaments. vii) FIDE remittances - Rs. 15,35,052/-: The assessee has remitted the above sum to FIDE, Greece during the previous year towards Trainers Coach Expenses, Title Fees, etc. These applications are outside India and as such not allowable as exempt applications. The Organization is learnt to remit considerable sums to FIDE which enri....
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....ec.2 (15) of the Act., and all the activities of the society only relates to promotion and development of the game of chess in India and any surplus of receipts are applied only for such object of the society. It was also explained by the Ld A.R that there were no activities conducted by the assessee society in the nature of trade commerce and business with a motive to make profit, or distribute such profit to any individuals. The foreign remittance of the society was also for the purpose of development of the game of chess in India and not for any other purpose. It was therefore prayed that the Revenue may be directed to provide the benefit under section-11, section-12 and section-13 of the Act to the assessee. 5. Ld. D.R argued in support of both the orders of the Revenue authorities and reiterated that utmost the assessee society may fall under the fourth limb of Sec.2(15) of the Act viz., "advancement of any other objects of general public utility" and since the aggregate value of the receipts from the activities of the society has exceeded the limit prescribed by the Second proviso to Sec.2(15) of the Act, the Ld. Assessing Officer had rightly assessed the income of the asses....
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.... for the IX Asian Games held in 1982. * To act as an interface between the Ministry of Youth Affairs & Sports and other agencies concerned with the promotion/development of sports in the country on the other hand, i.e., State Govt., U.T., Administration, IOA, National Sports Federations (Sports societies like the assessee society), Sports Control Boards, etc. * To establish, run, mange and administer the institutions to produce high caliber coaches, sports scientists and physical education teachers. * To plan, construct, acquire, develop, take over, manage, maintain and utilize sports infrastructure and facilities in the country. * To initiate, undertake, sponsor, stimulate and encourage research projects related to various sports science for upgradation of sports, sportspersons and coaches. * Other incidental issues concerning promotion, development and excellence in sports. * For achieving all the above objects recognized National sports federations of the country likewise the assessee societies act as a feeder. 6.2. Ministry of Youth Affairs & Sports was initially set up as Department of Sports in 1982 at the time of organization of IX Asian Games in New Delhi. It bec....
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....hin the realm and remit of the Union Government under its residuary powers and within the ambit of Entries 10 and 13 of the Union List in the Seventh Schedule of the Constitution of India. 1.2. At the national policy level, sport is at par with public education and public health, and like them sport is a public good and sport development is a public function. It is for this reason that even though national sports bodies are autonomous in nature both, the Supreme Court of India and several High Courts have, in various judgments, maintained that although national sports bodies are not 'State" within the meaning of Article 12 of the Constitution of India, they come within the writ jurisdiction of High Courts under Article 226 o the Constitution of India because they perform state-like functions such as the selection of national teams and representing the country in international sports events and forums. 1.3. Globally, countries across the world have enacted laws or enunciated guidelines for the regulation of sports in public interest and in national interest. The need to regulate sports arises out of several considerations such as the need to prevent racism in sports, eradicate d....
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....o Information Act; measures to ensure free, fair and transparent elections by the NSFs; and measure to combat age fraud in sports; and guidelines for the prevention of sexual harassment of women in sports. 1.7 The various orders/circulars issued by the Government from time to time are amalgamated under this National Sports development Code of India, 2011. 2. Introduction 2.1 Sports and games form an essential part of human resource development. Government of India attaches utmost importance to sports for development and sports for excellence. It has been the endeavour of the Government to lay down procedures for effective coordination among various agencies involved in the promotion of sports and extend required infrastructure, training and other facilities to the sportspersons for achieving excellence fin the international events. 2.2. Over the years a number of National Sports Federations (NSFs) have come up for development of specific games/sports/disciplines, Government of India has been actively supporting these Federations in achieving their objectives. 2.3. Guidelines of 2001 laid down the following principles, which now, stand subsumed in the National Sports Devel....
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.... out that no State Government has the competence or the jurisdiction to undertake such exercise, which is the sole prerogative of the Union Government. 3.2. In another Public Interest Litigation No.195/2010 in the matter of Rahul Mehra Vs. UOI and Others, the Hon'ble Delhi High Court took a serious view on the mismanagement of the Sports Sector in the country and expressed deep concern at the inaction on the part of the Government in implementing and enforcing its own guidelines, particularly those relating to age and tenure. 3.3. During the XIII Olympic Congress held at Copenhagen in 2009, it was resolved that each National Olympic Committee is required to be fully compliant with the laws of the land. Since the High Court of Delhi, while hearing the matter of government guidelines, including those on age and tenure limit, has refused to accept the prayer of National Sports Federations (NSFs), including IOA, to stay the operation of the said guidelines, they automatically become legally enforceable and the NSFs, including IOA are legally bound by it. Further, the International Olympic Committee (IOC) has informed the Government that the IOA is in the process of amending its con....
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.... its name since inclusion of the word "India" suggests the patronage of Government of India. (Reference: The Emblems and Names (Prevention of Improper Use) Act, 1950 which prohibits the use of India in the name of any entity without prior approval of the Government, as it may suggest or be construed to suggest the patronage of the Government) 3) Shall lose its All India character and may not be able to regulate and control the concerned sports discipline in the country. (Reference: Most of the NSFs are registered under the Societies Registration Act, 1860 or under a State Societies Registration Act which are operative in a particular State and as such without the recognition of Central Government, the NSF cannot operate beyond the boundaries of the State concerned where it is registered.) 4) Shall not be able to avail itself of Custom Duty/Exemption for import of sports goods, sports equipment, sports requisites as an NSF/Apex Body. (Reference: Department of Revenue's Notification No.5/2010-Customs dated 19.10.2010 read with Notification No.146/94-Customs dated 13.07.1994 allows the customs duty exemption to NSF under a certificate issued by SAI; further Notification No.21/2002....
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....ion Vs. DCIT reported in (2011) 010 ITR (Tribunal ) 0201 has held that towards promoting the traditional art by giving training is not regularly given in the school, colleges, institutions having formal frame and the assessee who is engaged in the promotion of the traditional art Kuchipudi by giving training is entitled to the benefit U/s. 10(23)(iiiad)- the Hon'ble Tribunal expanding the scope of institutions for educational purposes to qualify for the exemption as in this judgment is despite the position as obtained in the provision that such institutions should exist solely for educational purposes. 8.3. The Hon'ble Kerala High Court in the case of Commissioner of Income Tax Vs. ST. Mary's Malankara Seminary reported in [2012] 348 ITR 69 (Ker) held that there is nothing to indicate that section 10(23C)(iiiad) of the Income-tax Act, 1961, requires the educational institutions referred to therein to impart education in any particular subject or in any manner whatsoever. The term "education" enjoys a wide connotation covering all kinds of coaching and training carried on in a systematic manner leading to personality development of an individual. In the case of a seminary, students....