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TMI Blog2014 (2) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... not as per the provisions of section 57(iii) of the Income Tax Act". 2. Grounds No. 1 and 5 are general and does not require any adjudication. Ground no 2 and 3 are on the issue of claim of exemption on award money. Ground no 4 is on the issue of allowance of expenditure. 3. We have heard the learned DR and learned Counsel for the assessee and perused the paper book placed on record along with the written submissions of the D.R. 4. Briefly stated, assessee was working as an Officer in State Bank of India and was cricket player of repute and played cricket for the Bank and also for the Country. In the return, he has shown income from salary, house property, professional income and other sources. The assessee claimed certain amounts of Rs.9,42,644/- as exempt from income tax in view of Board circular No.447/199/1/86IT(A1) dated 22.01.1986 with respect to net prize money received from various cricket tournaments at Rs.6,19,067/-, awards and gifts of Rs.23,577/- and Man of Match awards of Rs. 3 lakhs. The A.O. did not allow the claim of the assessee for exemption on the reason that in case of sportsman who is a professional, awards received by him shall be in the nature of benefit i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sponsor. Senior players like the assessee have their own equipment specially made for and they pay for it. Most of the occasions, the gloves, pads, dress material and other equipment are taken away by staff, grounds men, fans, etc and the assessee was in no position to control them. Therefore, these have to replaced at their own cost. The leather gloves, shoes, etc., are very expensive and each items costs Rs.5000/- to Rs.10,000/- and these have to be changed several times. Assessing officer has disallowed the entire expenses of Rs. 18,86,455/- on the ground that the assessee failed to explain as to how this is an allowable expenditure against Logo income. 8. Before the CIT(A), it was stated that on many occasions, equipment like pads, gloves, bats. etc., are taken away by the fans, grounds men etc as memorabilia. Because of this reason huge expenditure was incurred for his practice and playing the matches. It was further submitted that the CBDT Circular NO.1432 issued in 1981 though has been withdrawn, has given benefit to cricket players to the extent of 75% of the amount received. Even though the circular was withdrawn, the CBDT has accepted the claim of the cricket players ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of section 57(iii) of the I.T. Act, whereas, in assessee's appeal, assessee is claiming the balance of expenditure disallowed and confirmed by the CIT(A) in grounds No. 2. Ground No.3 pertains to deduction under section 80RR which was not allowed by the A.O. and learned CIT(A). 13. On the issue of disallowance of expenditure, the facts are that Assessee claimed expenditure incurred towards cost of cricketing gear and incidental expenses for practicing and participating in various tournaments. A.O. disallowed the claim of expenditure amounting to Rs.19,93,782/- by saying that all the requirements of the cricketers such as dress, equipment, coaching, training, travel, stay etc., were looked after by the BCCI which is the supreme body for cricket control in India. The senior cricketers get their choice of wear and equipment. Hence, it is difficult to believe that the Assessee would have incurred any expenditure for playing cricket under the aegis of BCCI for the country. AO has further mentioned that the examination of ledger account of the expenditure does not reveal even a single entry of payment towards buying of cricket equipment. Most of the expenditure has been incurred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l 31.03.199. Normally, the expenditure should either be before or after a particular match or tournament. Most of the expenses are in round figures of Rs.15,000/- paid in cash. Thus, according to the A.O. the ledger account might have been prepared at the end of the year and the claim has been made in order to reduce the incidence of tax. The A.O. has further mentioned that not a single bill/invoice/ voucher were produced for verification. Hence the expenditure is not supported by any primary evidence in the form of invoices/bills/vouchers. The appellant, on the other hand, has contended that in order to play national or international level of cricket every player need to practice and train for long hours each day. The players have to travel to different places and incur substantial amount towards travel, special diet, trainers and support staff in addition to buying equipment on continuous basis. The appellant could not maintain pucca vouchers due to deep involvement in the game and also due to prevailing conditions under which the equipment was acquired. After considering the arguments of the appellant, I am of the opinion that the A.O. was not justified in disallowing the entire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes to claim of deduction u/s. 80RR amounting to Rs.40,00,197/- being 75% of foreign remittances of Rs.53,33,596/-. During the year the assessee received gross amount of Rs.96,33,596/- towards advertisement for acting in ad-movies from different commercial entities promoting soft drinks, sports wear, tyres etc., The gross amount included a sum of Rs.53,33,596/- received by way of convertible foreign exchange from the following companies. a. Reebok International Limited Rs.44,90,320/- b. Bridgestone Tyres Rs. 8,43,276/- Rs.53,33,596/- 19. It was claimed that the assessee is entitled to deduction u/s. 80RR as a professional actor in ad-films and not as a sportsman. As a cricketer for the country the assessee gained popularity with the masses and, therefore, decided to act in movies, in particular ad-films. He has taken crash courses in acting to position himself in the ad-films market by improving acting skills and talent and enhance star value. Accordingly, the assessee decided to act in ad-films for Ramolene Suitings, SG Sports Kit, Pepsi, Dunkans Tea etc., Observing his popularity and success in ad-films, certain foreign companies like Reebok International sought his services f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , as is brought into India by, or on behalf of, the assessee in convertible foreign exchange within a period of six months from the end of the previous year or where the Chief Commissioner or Commissioner is satisfied (for reasons to be recorded in writing) that the assessee is, for reasons beyond his control unable to do so within the said period of six months, within such further period as the Chief Commissioner or Commissioner may allow in this behalf : Provided that no deduction under this section shall be allowed unless the assessee furnishes a certificate, in the prescribed form, along with the return of income, certifying that the deduction has been correctly claimed in accordance with the provisions of this section.]" 15. The remuneration received from acting in ad- films or certain companies be termed as income derived in exercise of his profession. Last year the appellant claimed himself as a non- professional cricketer for claiming certain gifts and awards as exempt in view of Board's circular No.447 dated 22.09.1986. following the decision of Bangalore Bench of ITAT in the case of GR Viswanath vs. Fifth Income Tax Officer reported in 29 ITD 142, the c held that the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers of the A.O. and CIT(A). 23. We have considered the issue and examined the facts on record. We are of the opinion that learned CIT(A) got carried away by the role of assessee as cricketer. Even though assessee may be reputed cricketer, for acting in T.V./ print media, it requires special talent. Eventhough he may not be professional cricketer, he can pursue modelling as a professional. Similar issue was considered by the Coordinate Bench in the case of Sachin Tendulkar who also received professional income from foreign source for various advertisements, in convertible foreign exchange. There in also, the A.O. rejected the claim on the reason that assessee was not a professional cricketer and income from modelling on advertisements was not derived from exercise of his profession. The Coordinate Bench of ITAT, Mumbai in the case of Sachin R. Tendulkar (supra) held as under : "The assessee while appearing in advertisements and commercials, had to face the lights and camera. As a model, the assessee brought to his work a degree of imagination, creativity and skill to arrange elements in a manner that would affect human senses and emotions and to have an aesthetic value. No doubt, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... keter. This ground of the assessee is allowed. 29. Ground No.3 is with reference to the claim of deduction under section 80RR. Consequent to the finding given in ITA.No.225/Hyd/2003 against ground No.3 therein, we hold that assessee is eligible for deduction under section 80RR. Accordingly, this ground of the assessee is allowed. 30. In the result, appeal of the assessee ITA.No.647/Hyd/2004 is allowed. ITA.No.1040/Hyd/2004 - A.Y. 2001-2002 : 31. This appeal is by the assessee against the order of the CIT(A)-IV, dated 16.08.2004. Grounds No. 2 and 3 of the assessee pertain to disallowance of expenditure of Rs.9,50,000/- claimed against the income on logo money of Rs.15,71,310/- assessed under the head "other sources". This issue was recurring and CIT(A) without referring to the predecessor orders on the issue confirmed the disallowance made by the A.O. This issue was also discussed in earlier two assessment years i.e., A.Y. 1998-99 and 1999-2000 and consistent with the stand taken therein, we allow the claim of the assessee, subject to disallowance of 20% of the claim as was done in those years. Accordingly, an amount of Rs.1,90,000/- was disallowed and balance amount was allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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