TaxTMI 
TaxTMI 
TaxTMI 
2017 (10) TMI 1676
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....hra Pradesh. Assessee was granted registration u/s. 12AA of the Income Tax Act [Act] vide order of the DIT(E) in F. No. I/28/12A/12 13/DIT(E) dt.16-01-2003 w.e.f. 01- 04-2002 and later, it was modified to be granted w.e.f. 20-01-1997 pursuant to the directions of the ITAT dt. 26-12-2008. Assessee filed its return of income for the AY. 2006-07 on 07-11-2006 declaring NIL income. The return was processed u/s. 143(1) of the Act on 29-03-2007. 3. A survey u/s. 133A of the Act was conducted on 21-10-2011 in the office premises of the assessee located at Rajiv Gandhi International Cricket Stadium, Uppal, Hyderabad. It was found that the assessee was carrying on activities which are not charitable in nature. It was observed that the assessee was deriving income from various commercial sources including receipts from league fees, sale of tickets of One Day International matches, IPL matches, advertisement charges, franchise fees and sponsorship fees from various companies. 4. In view of the above, DIT(E) was of the opinion that the assessee has lost its character as a charitable society in view of the first proviso to Section 2(15) of the Act. Therefore, the assessee was issued a sho....
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....ich was not substantiated; iii. Disallowed depreciation [10%] of the value of assets for which no evidence submitted to the value of Rs. 96,237/ -; 9. Aggrieved with the above order, assessee preferred an appeal before the CIT(A) and CIT(A) after considering the submissions of the assessee has adjudicated in favour of assessee by observing that in view of the order of the ITAT dt. 31-05-2012, the matter was remanded back to the file of DIT(E), which amounts to registration of assessee stands restored as of date. Therefore, exemption u/s. 10 cannot be denied to the assessee for the reason of absence of registration. Further, after considering the various submissions of assessee, he found that the activities and sources of income of assessee are similar to the facts of the Tamil Nadu Cricket Association, following the decision of Hon'ble Madras High Court in the case of Tamil Nadu Cricket Association, assessee was found to be not engaged in activities in nature of trade and commerce or business. Therefore, assessee is eligible for exemption u/s. 11 of the Act. 10. Aggrieved with the above findings of the CIT(A), Revenue is in appeal before us with the following gro....
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.... other ground that may be urged at the time of hearing of the appeal". 11. With regard to disallowance of various expenditures, Ld. CIT(A) has sustained the addition and also enhanced the addition as below: 11.1. Disallowance u/s. 40A(3): During the appellate proceedings, assessee submitted that the cash payments were less than Rs. 20,000/- each, are payments to several persons and had been collected together while making entries in the books. Assessee admitted that out of the cash payment of Rs. 7,19,372/- listed in the assessment order, assessee was unable to produce cash vouchers for Rs. 3,48,900/- due to the fact that various documents had been seized by ACB and could not be traced. Ld. CIT(A) referred the matter back to the file of AO for verification. The AO submitted that apart from the expenses to the extent of Rs. 3,48,900/-, for which assessee has admittedly failed to produce the vouchers, further to the extent of Rs. 86,050/- also not substantiated with proper evidence. Considering the AO's remand report, Ld. CIT(A) confirmed the amount of Rs. 4,34,950/- as disallowances. 11.2. Disallowance of depreciation: Ld. CIT(A) sustained the addition made ....
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....nt craves leave to add to, amend or modify the above grounds of appeal either before or at the time of hearing of the appeal, if it is considered necessary". 13. Considered the rival submissions and material facts on record. The Revenue is in appeal before us aggrieved with the findings of the Ld. CIT(A) that assessee is eligible for deduction u/s. 11 of the Act. It is pertinent to note that the registration was cancelled following the survey conducted in the premises of the assessee on 21-10-2011. Aggrieved with the above cancellation, assessee preferred an appeal before the Co-ordinate Bench and the same was remitted back to the file of DIT(E) directing him to communicate to the assessee all the issues arise in his order and give a reasonable opportunity to assessee to explain on those issues and after considering the assessee's submission, decide the issue in accordance with law. 14. Considering the above direction, DIT(E) held that assessee is carrying on activities not according to its objects and further that it is carrying on commercial activities. Therefore, it is not eligible for registration u/s. 12AA of the Act. At this stage, Revenue has filed the present appe....