AI Drafter - (New and Powerful) 
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
TaxTMI 
TaxTMI 
2014 (11) TMI 1013
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 3. The brief facts of the case are that the assessee is a Society registered Under Tamil Nadu Societies Registration Act, 1975, formed to promote sports such as swimming etc. The Ld. ADIT(E) opined that the objects of the society falls under the fourth limb of Sec 2(15) of the Act viz."Any other objects of general public utility" . The Ld. ADIT(E) further observed on examining the Income and Expenditure account of the assessee that, the assessee had receipts exceeding Rs. 10 lakhs in the nature of Coaching fees and Swimming academy fees aggregating to Rs. 43,33,007/- and further the activities of the society were commercial in nature. The Ld. A.R. contended before the Ld.ADIT(E) that the assessee trust does not carry out any activity in the nature of trade, commerce, business etc., but only conducts sporting events and related activities. Disregarding the submissions of the Ld. A.R, the Ld.ADIT(E) recommended for cancellation of registration U/s. 12AA of the Act in the case of the assessee. Further treating the assessee as an AOP, the Ld.A.O brought to tax its excess of income over the expenditure. When the matter cropped up before the Ld. CIT (A), the Ld. CIT (A) held the i....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... and hence the society is eligible for exemption U/s. 11 & 12 of the Act. Moreover swimming is a good exercise and health promoting activity. Hence, I direct the Assessing Officer to accept the income returned at nil and all the additions made in the assessment order are hereby ordered to be deleted." 4. Before us, Ld. A.R. reiterated his submission made before the Revenue. He further pointed out that the issue is covered in its favour by the decision of the case of M/s.All India Chess Federation in ITA No.184/Mds./2013 dated 09.05.2014. He further filed two paper books containing 18 & 26 pages respectively which consist of the following documents and decision of the various cases:- List of Documents Date Particulars 09.01.1995 Copy of certificate of Registration of Societies for registration of the appellant under Tamil Nadu Societies Registration, Act, 1975 along with Bye-Laws and Memorandum of Association of the appellant. 22.04.2002 Copy of Agreement between the appellant and Sports Development Authority of Tamil Nadu. 28.08.2008 Copy of Letter from Sports Development Authority of Tamil Nadu to the Executive Engineer/O&M/Ambattur/CEDC/West -- ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....amme for adult members of the Dolphin Club. 9. To provide training and swimming work-outs for disabled or handicapped persons so as to enable them to overcome or reduce their handicaps and improve their skills or abilities. 10. To assist the Hon. Coaches of the Dolphin Club in their efforts to increase their knowledge and experience in areas directly as well as indirectly related to swimming and coaching. 11. Whenever necessary to provide the Hon. Coaches of Dolphin Club all assistance as well as funds to enable them to accompany the Dolphin Club Swimmers for competitions or training camps. 12. To become a member or affiliate with any organization, society Association or Club has common interests with the Dolphin Club, especially in the field of swimming. 13. To collect membership fees donations, grants and loans to meet the above mentioned objectives on a non-profit basis. 14. To invest the funds of the club on temporary, short term or long term basis so as to earn some additional funds for meeting the objectives of the Dolphin Club. 15. To do all such acts, deeds and things as may be incidental or necessary or conduct....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., is a society registered under the Tamilnadu Society Registration Act, XXI of 1860 on 12th day of December, 1958. ii) All the objects of the trust, centers around promotion, development, and to maintain control selection of teams in the game of chess in India. iii) The trust has been earlier notified by the Central Government in exercise of the powers conferred by Sec.10(23) of the Income Tax Act vide notification No.223/2002 which was intimated vide letter dated 30.08.2002 (Page No. 30 of the paper book). iv) Since Sec.10(23) of the Act was omitted by the Finance Act, 2002 with effect from 01.04.2003, the Ld. DIT(E) vide order No.2(1491)07-08, dated 19.06.08 had registered the Trust U/s. 12AA of the Act (page No.32 of the paper book). v) The Government of India, Ministry of Youth Affairs and Sports had recognized the assessee society and had given grants on various dates for conducting various Championship and other programs (page Nos.269 to 349 of the paper book). vi) Ministry of Youth Affairs and Sports has been consistently recognizing the assessee trust as a National Sports Federation for a game of chess (Page Nos.352 to 356 of the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....chieve excellence at national and international level" in order to fulfill these objectives, the Ministry has promoted various NGO's, Voluntary Organizations, National Sports Federations, Regional Sports Associations etc. The Ministry has also provided financial assistance to various recognized organizations including National Sports Federations for sending the teams abroad for training and participation in international tournaments, for holding international tournaments in India for conducting National Championship and for procuring sports equipments. 6.3. From the above it is evident that the Government of India has been taking keen interest to develop sports in India for personality development of the youth in India and achieve excellence in sports in national and international level. There are various sports recognized by the Olympics body, Common Wealth Sports Authorities and Asian Games Sports Authorities. These sports activities can be developed only by providing systematic education in sports in the relevant field coupled with physical and mental training. The Government of India in order to promote sports in India has recognized various organizations as National S....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nagement and managerial and financial accountability in sports, address anti-trust and competition policy issues related to sports, regulate sports broadcasting rights, regulate the price and entry to sports events, etc. 1.4 Government of India also has been, from time to time, taking various steps and initiatives to promote good governance practices in the management of sports at the national level in pursuance of successive National Sports Policies. These policies are based on the Basic Universal Principles of Good Governance of Olympic and Sports movement and do not, in any manner, contradict or interfere with the autonomy of the national sports bodies in discharging their functions and duties in accordance with the International Olympic Committee Charter. 1.5 Accordingly, after the notification of the 2011 National Sports Policy the Government notified revised Guidelines for Assistance to National Sports Federations (NSFs) in August 2001 and issued subsequent guidelines from time to time, which are legally binding on the National Olympic Committee (NOC), i.e., the Indian Olympic Association (IOA), and the National Sports Federations (NSFs) if they are desirous....
X X X X Extracts X X X X
X X X X Extracts X X X X
...." for the purpose for determining the entitlement for government assistance. iii. Detailed guidelines for preparation of Long Term Development Plans (4-year cycle), provision made for annual sanction budgets of development plans. iv. Binding tripartite agreements between NSFs, the Department and the SAI to be drawn up. v. An emphasis on professionalizing and upgrading the administrative and financial management of Federations. vi. An emphasis on systems to handle players' grievance. vii. The appointment of registered chartered accountants to ensure maintenance of proper and transparent accounts. viii. Recognition of the role of sports promoters, particularly in event management. 3. Recent Developments 3.1. Hon'ble High Court of Delhi, in Civil Writ Petition No.7868 of 2005, in the matter of Indian Hockey Federation, while disposing off the matter vide order dated 02.03.2010, categorically observed that the Government guidelines governing the NSFs are valid, binding and enforceable; and the tenure clause is not in violation of the International Olympic Charter. The Hon'ble Court also observed that the Government....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to become compliant with the IOC Charter. IOA has also indiated that they are in the process of amending their Constitution in line with the IOC suggestions. 3.4. The gist of important new initiatives taken by the Government is indicated hereunder. These have been suitably incorporated in the subsequent paragraphs of Guidelines by replacing the existing provisions and /or adding the new provisions. The new provisions supersede the earlier provisions in the 2001 Guidelines. 3.5. Gist of new initiatives taken by Government. in the recent past: • Restoring the limits on duration of tenure of office bearers of IOA and all recognized National Sports Federations.(Annexure-XIII) • Guidelines for Good governance in the context of 'Basic Universal Principle of Good Governance of Olympic and Sports Movement".(Annexure -XIV) • Annexure recognition of National Sports Federations(Annexure - XV) • Measures to combat fraud in age of players. (Annexure -XVI) • Prevention of sexual harassment of women in sports, etc. (Annexure -XVII) • Notifying IOA and NSFs as Public Authority ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ty exemption to NSF under a certificate issued by SAI; further Notification No.21/2002-Customs provides custom duty exemption for import of Requisites for games and sports for Apex body in relation to the concerned game or sport). 5. Shall not be able to avail itself of Income Tax exemptions under relevant provisions of the Act (e.g., as per the Sec.80G(2)(viii)(c) any sum paid by the assessees, being a company, in the previous year as donations to the IOA or to any other association or institutions established in India, as the Central Government may, having regard to the prescribed guidelines, by notification in the official gazette specify in this behalf for (i) the development of infrastructure for sports and games; (ii) the sponsorship of sports and games; is exempted from tax). 6. Shall not be able to avail itself of the special dispensation available to NSFs to remit funds towards sponsorship, prize money for activities abroad (Reference: FEMA (Current Transaction) Rules 2000 - Schedule II section 9) 7. Participation in national and international events organized by NSFs that are not recognized by Government of India in the Ministry of Youth Affairs....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 on completion of their studies are made priests who head churches as religious leaders practicing and propagating religion as a profession. Accordingly, religious teaching in the seminary is also education and seminary is, therefore, an "educational institution" entitled for exemption U/s. 10(23C)(iiiad). 8.4. Recently, while deciding the case "Counsel for India School certificate examinations Vs. DGIT" vide order dated 20th March, 2012 reported in (2012) 206 Taxman 466 (Delhi), Hon'ble Delhi High Court has held that :- "Reading of Sec.10(23)(vi) shows that any University or other educational institutions existing solely for educational purposes qualifies under the clause. The University and the educational institution should not be for the purposes of profit. The second requirement is negative in nature, whereas the first requirement is positive. The Court cannot accept the contention of the Revenue and the reasoning given in the impugned order that the petitioner is not an educational institution because it is an examin....