2023 (7) TMI 616

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....ssee against rejection of application for registration under section 12AA in Income Tax Act, 1961 was set aside and the appeal allowed. 2. Mr. Chimanka, learned advocate, Senior Standing Counsel appears on behalf of appellant-revenue. He refers to order dated 29th July, 2013 made by the Commissioner of Income Tax (CIT). He relies on two paragraphs in it, extracted and reproduced below. "In the present case the primary purpose is the promotion of game of tennis by encouraging young persons, providing coaching facilities and organizing tournaments. In this context the financial statement of the last three financial years i.e., 2010-2011, 2011-2012 & 2012-2013 have been examined. The CDTA has stated in the Income & Expenditure acco....

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....tances it cannot be concluded that CDTA is engaged in charitable activities. Therefore, the Registration applied for 12A of the Act is hereby rejected." (emphasis supplied) 3. He refers to sub-section (15) in definitions section 2 to submit, there is no element of charity in the activities of the assessee as reflected from said order of CIT in the assessment years considered. In the circumstances, it was correct appreciation of the situation for the CIT not being satisfied to grant the registration. The ITAT setting aside the order gives rise to substantial questions of law, on which the appeal be admitted. 4. Mr. Pattanaik, learned advocate appears on behalf of the assessee. He draws attention to reasoning given by the ITAT. Parag....

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....he promotion of sports and games can claim exemption under section 11 of the Act, even if it is not approved under section 10(23) relating to exemption from tax of sports association and institutions having their objects as the promotion, control, regulation and, encouragement of specified sports and games." (emphasis supplied) 5. Perused reasoning given by the Commissioner in said order dated 29th July, 2013 made under section 12AA (1)(b)(ii). Objects of the assessee stand reproduced in paragraph 8 of impugned order. We extract and reproduce the same. "1. To promote the game of Tennis and all other sporting activities by encouraging young persons, providing coaching facilities and organizing tournaments. 2. To....