AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2014 (11) TMI 1013
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....at 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 issue in favour of the assessee by holding a....
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.... 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 -- Copy of list of International, National and State Level Swimmers trained by the appella....
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....icaps 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 conductive to the furtherance of the above objects. 16. All the above activities will be carried out without any distinction of casts, creed, or religion." 6.2. Further from the paper book page 10, we find that there is an agreement e....
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....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 paper book) 6.1. Further it is pertinent to know that Sports authority of India was established by the Government of India in the year 1994 as a society under the Societies Registration Act, 1860 with the twin objective of develo....
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.... 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 Sports Federations and has infused funds and other resources. Considering the above facts it can be firmly construed that these organizations will fall within the ambit of promoting education in the field of sports which is within the scope of the first limp of the amended provisions of Sec.2 (15) of the Act. 7. It is also pertinent to note the "National Sports Development Code of India, 2011....
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.... 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 of regulating and controlling sports in India, or using the name of India or representing India within or outside India, or availing themselves of various benefits and concessions, including financial benefits such as customs duty exemption or income tax exemption that are available to NSFs, including the NOC. Although these bodies may be registered in different states under the Societies Registration Act or the Companies Act, their authori....
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..... 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 of India is fully competent to make regulations on NSFs and IOA. The Hon'ble Delhi High Court further cited entry 10 and 13 of List I (Union List) which read as under:- Entry 10: Foreign affairs, all matters which bring the Union into relation with any foreign country. Entry 13: Participation in international conferences, associations and other bodies and implementing of decisions made threat." Based on the above, the Hon'ble Court observed that while an NSF has autonomy in the actual conduct of sports, Government recognition is necessary to repr....
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....* 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 under Right to Information Act. (Annexure -XVIII) * Drawl of advance calendar of sporting events both national and international(Annexure -XIX) * National Anti-Doping Rules notified vide gazette notification No.21-4/2008-ID dated 5th February, 2010 (Annexure -XX) * Guidelines for efficient management of Coaching Camps, Selection of Coaches, Selection of Athletes, etc. (Annexure -XXI) * Representation of Indian Nationals only, in National Teams (Annexure -XXI) 3.6. The National Sports Federations who have the recognition including the annual recognition of Government of India in the Ministry of Youth Affairs and Sports, enjoys various faci....
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....s; (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 and Sports shall not be considered for appointment to government jobs under sports quota (Reference: DOPT's orders) 8. The sportspersons of the unrecognized NSFs may not be able to get admissions under sports quota in schools and colleges. 9. The sportspersons participating in national championships organized by NSFs not recognized by Government of India in the Ministry of Youth Affairs and Sports shall not be entitled for railway concession or other concessions granted for this purpose." 8. Further, the reliance is placed by the assessee in the decisions of the following four cases, which are relevant to the case before us and therefore they are summarized as follows:- 8.1 The Hon'ble ITAT Ahmedabad Bench in the case of Ahmadabad....
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....ucational 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 examined body and its principle work is to conduct examination and charge examination fee, etc. The words "educational institution" used in section 10(23C)(vi) and the phrase "educational purposes" have been interpreted and examined in several cases(para 4). In conclusion, Hon'ble Delhi Court held that Council for The Indian Scholl Certificate Examinations is an educational institution for the purpose of section 10(23C)(vi) of the Income-tax Act." 9. Thus, it can be concluded that the sports promotion is "human resources development' and considering the policy declaration of Government of India, sports is construed at par with "education". The Government of India does consider promoting and regulation of sports as constitutional obligation and discharges the same through recognized sports fe....