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TMI Blog2018 (5) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of exemption granted u/s 11 of the Act. Applicability of the proviso to sec. 2(15) - cricket matches conducted by the assessee by selling tickets was a commercial activity - claim for exemption u/s 11 rejected - Held that:- There is no dispute that the promotion of cricket falls within the scope of objects of the assessee. Further, the recreational facilities did not become operational during the year under consideration. - Decided against revenue - I.T.A. No. 4533/Mum/2012, I.T.A. No. 207/Mum/2014 - - - Dated:- 6-2-2018 - Shri B.R. Baskaran (AM) And Shri Pawan Singh (JM) Assessee by : Shri Arvind Sonde Shri Jayant Gokhale Department by : Shri Bhupendra Kumar Singh ORDER Per B. R. Baskaran ( AM ) The as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also confirmed the same. 4. The Ld A.R submitted that the assessee had challenged the order passed by Ld DIT(Exemption) cancelling the registration granted to the assessee, by filing appeal before ITAT. He submitted that the ITAT has already passed its order in ITA No.1700/Mum/2011 on 08th August, 2012 (138 ITD 0338), wherein it has been held that the cancellation of registration cannot be retrospective. Accordingly the Tribunal held that the cancellation of order shall take effect from 01.06.2010 only. Accordingly the Ld A.R submitted that the assessee shall be having registration u/s 12A of the Act during assessment year 2008-09 and accordingly contended that the assessee should be granted exemption u/s 11 of the Act. 5. We heard Ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2(15) of the Act. The assessee set up certain recreational facilities in its premises, which were considered as commercial activities by the assessing officer. Further the AO also took the view that the cricket matches conducted by the assessee by selling tickets was a commercial activity. Hence he invoked the provisions of the Proviso to sec. 2(15) of the Act. Thus the assessing officer rejected the claim for exemption u/s 11 of the Act on two grounds, viz., (a) The registration has been cancelled by Ld DIT (Exemption) with retrospective effect. (b) The assessee has indulged in commercial activities in the form conducting cricket matches and running recreational centres. 8. The second ground urged by the revenue relates to the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on facilities, the Ld CIT(A) noticed that the income of recreation centre is not received by the assessee and further the said facilities became operational only in the year relevant to AY 2010-11. Accordingly the Ld CIT(A) rejected the second reasoning given by AO in order to deny exemption u/s 11 of the Act. The revenue is aggrieved. 12. We heard the parties and perused the record. There is no dispute that the promotion of cricket falls within the scope of objects of the assessee. Further, the recreational facilities did not become operational during the year under consideration. Accordingly we do not find any infirmity in the order passed by Ld CIT(A) on this issue and accordingly confirm the same. 13. In the result, the appeal of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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