2024 (9) TMI 212

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ferred to as 'the Act'), by the DCIT (E), Circle 1(1), New Delhi (hereinafter referred to as the Ld. AO). 2. The grounds raised by the Revenue read as under:- "1. Whether on the facts and in circumstances of the case and in law ld.CIT(A) has erred in not appreciating the fact that activities of assessee has hit by proviso to Sec.2(15) of the Income Tax Act and in not setting aside the matter to the file of AO to adjudicate it afresh in light of the ratio laid down in the order of Hon'ble Supreme Court of India in the case of ACIT (E) vs. Ahmedabad Urban Development Authority as provided for in the Supreme Court order dated 19.10.2022. 2. the appellant craves leave to add, alter, amend, append or delete any of above grounds." 3. Heard ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nture to which the assessee had replied that it is operating on non-profit motive basis and the sports activities cannot be considered to be the business activity. It was submitted that the arrangements of entering into sponsorship was done only to partly recover the expenses incurred for participation in Rio Olympics 2016. However, the AO examined the Memorandum of Association and the kinds of receipts and concluded that the activities of the assessee do not fall under the limbs of amended proviso to section 2(15) and has to be considered falling in the category of advancement of general public utility. The AO observed that the activities are commercial in nature and accordingly held that the income from such receipts constituting its majo....