TaxTMI 
TaxTMI 
2019 (5) TMI 1134
X X X X Extracts X X X X
X X X X Extracts X X X X
....pport the claim that it is carrying out only charitable activity. The Ld. Commissioner of Income Tax has rejected the application of the assessee for granting registration u/s.12AA of the Act as per the findings and observations appearing in his order on record mostly because as per the view of Ld. Commissioner of Income Tax (Exemption) that the assessee are in receipts from the Board of Control for Cricket in India (BCCI) every year and these are in nature of trade, commerce or business as per proviso to section 2(15) of the Act and therefore, the assessee is not carrying out any charitable activities. 4. At the time of hearing, the Ld. AR of the assessee submitted that the assessee society is only recognized body for selection of Cricket player in Chhattisgarh. The assessee is associate member of BCCI formed solely for promotion of Cricket in the State of Chhattisgarh. The main objects of the assessee trust are to encourage sports facilities at district level and to encourage young and talented sportsmen and also to provide facility for Cricket amount the sportsmen of Chhattisgarh. The assessee is basically organizing coaching for Cricket players, conducting matches at Distric....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t and all the objects of the assessee Society revolve around this core object. The objects of all the Cricket associations are almost similar to each other. The assessee falls well within the definition u/s.2(15) of the Act as advancement of any other object of general public utility. The assessee is not hit by the proviso to section 2(15) of the Act since the only endeavor of the assessee's society is to promote the Cricket giving chance to young talented player so that they can represent the State of Chhattisgarh. The assessee is an associate member of BCCI and BCCI gives grant to the assessee depending upon the level of activity conducted by the assessee. The objects of all the Cricket Associations are almost similar to each other. While conducting IPL matches, it is only the maintenance work and security arrangement that has been provided by the assessee from the grant and money receipts from BCCI and revenue is collected and dealt with by the franchisee owner of the respective IPL with which the assessee trust is not connected. 6. Per contra, the Ld. DR has placed reliance on the order of the Ld. CIT(Exemptions). 7. We have perused the case records and heard the rival co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ce in relation to any trade, commerce or business, for a cess or fee or any other consideration. 8. In order to adjudicate the proviso to section 2(15), we would revert to the factual position with regard to issue in hand: Cricket is indeed an immensely popular game in this part of the world, and anything to do with cricket results in mass involvement of public at large. The sheer strength of these numbers results in higher visibility of cricketing activities and the scale of operations on which the work for development of cricket is to be carried out. These facts, by itself, and without the assessee before us deviating from their objects or venturing into trade, commerce or business, cannot require the activities to be treated as commercial activities. When a cricket stadium is to be built, it has to accommodate a very large number of persons but the size of the stadium would not mean that the activity is for anything other than promotion of cricket. When the scale of operations are larger, even the surplus or deficit could be large, but then the scale of operations may be a scale on which commercial activities could be carried out but that fact cannot convert an objec....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ld be charitable in nature. 11. Before us, the Ld. AR of the assessee also submitted that predominant object and activity of all the State Association affiliated to BCCI are almost similar. Almost all the state associations are enjoying benefit of 12A and the assessee is denied of the same in spite of being engaged in exactly same activity. The Ld. AR of the assessee has placed reliance on the decision of the Hon'ble Bombay High Court in ITA No.500 to 504/Nag/2016 in the case of Tax Practitioner Benevolent Fund Vs. CIT reported in 266 ITR 561 wherein it was held that when objects of two institutions are similar then it is not open to the Income Tax Department to apply different parameters to different trusts carrying similar objects and similar purposes seeking grant of exemption u/s.80G of the Act. We have already analyzed the objects of the trust vis-a-vis other Associations of various other State under BCCI supervision for promoting Cricket. We have also examined that the objects of the other State's Associations are similar to that of the assessee and when those Associations are enjoying the benefit of 12A and exemption u/s.80G of the Act then the assessee on the similar ....