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TMI Blog2019 (1) TMI 1522X X X X Extracts X X X X X X X X Extracts X X X X ..... iations are “objects of general public utility” under section 2(15). All the objects of the assessee cricket associations, as reproduced earlier in this order, unambiguously seek to promote the cricket, and this object, as has been all along accepted by the CBDT itself, an object of general public utility. Cricket is indeed an immensely popular game in this part of the world, and anything to do with cricket results in mass involvement of public at large. The sheer strength of these numbers results in higher visibility of cricketing activities and the scale of operations on which the work for development of cricket is to be carried out. These facts, by itself, and without the assessee before us deviating from their objects or venturing into trade, commerce or business, cannot require the activities to be treated as commercial activities. When a cricket stadium is to be built, it has to accommodate a very large number of persons but the size of the stadium would not mean that the activity is for anything other than promotion of cricket.. When the numbers are large, the scale of operations is large, and when scale of operations are larger, even the surplus or deficit could be large, b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corpus donation - Held that:- We uphold the plea of the assessee and direct the Assessing Officer to treat the TV subsidy received from the BCCI as a corpus donation. The assessee gets the relief accordingly. As we have decided the main grievance of the assessee, as set out in ground no. 3 (a), we see no need to adjudicate on the alternative plea set out in ground 3 (b). That aspect of the matter is rendered academic and does not call for any adjudication as on now. Infrastructure subsidy received - capital or revenue receipt - Held that:- As long as the subsidy is relatable to a capital asset created by the assessee on his own or by an eligible district cricket association, as the present subsidy undisputedly is, it is outside the ambit of revenue receipt and taxable income. The very foundation of the stand of the Assessing Officer is thus devoid of legally sustainable merits. As such, there can hardly be an occasion, in principle, to hold such a subsidy as a revenue receipt or taxable income. There is not even a whisper of a discussion by the Assessing Officer to the effect that infrastructure subsidy is revenue in nature. As a matter of fact, the claim is made for the subsidy o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the advancement of any other object of general public utility". The proviso to this sub section, inserted with effect from 1st April 2009, states as follows: Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for acess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity 4. There have been several subsequent amendments to this statutory provision but those amendments do not have much bearing on the issue before us. Suffice to note that in plain words, all that this legislative amendment provided for was that in a situation in which, in the course of advancement of any other object of public utility, the activities of an institution involved "carrying on of any activity in the nature of trade, commerce or business" or of "any activity of rendering any service in relationship to any trade, commerce or business for acess, fee or any other consideration", then irres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ves by passing the prescribed tests for purpose of officiating as such in the matches conducted by the Association. 5. To select teams to represent the Association in any tournaments, championship or fixture local or otherwise. 6. To arrange, supervise, hold, encourage and finance visits of teams. 7. To arrange, and/or manage among other things league and/or any other tournaments. 8. To promote and hold either alone or jointly with any other Association. Club or persons, sports, meetings, competitions and matches and to offer, give or distribute towards prizes, medals and awards. 9. To make provision for coaching deserving persons in the various departments of the game in general and cricket in particular. 10. To impart physical education through the medium of Cricket and take all steps to assist to the citizens to develop their physique. 11. To organise matches in aid of public charities and Relief Funds. 12. To lay out such ground or grounds for playing the game and for other purposes and to provide pavilion, stadiums, other conveniences and amenities in connection therewith. 13. To introduce a Scheme of professionalism and to implement the same. 14. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... promote for training Cricketers and to provide for such amenities and facilities, usually provided in boarding schools. 28. To appoint Committee or Committees from time to time to organise matches for the achievement of the objects of the association and to utilise the net proceeds thereof towards the implementation of these objects. 29. To purchase, repair, make, supply, take on lease, hire or otherwise acquire any movable and/or immovable property, rights or privileges necessary or convenient for the purpose of carrying out the objects of the Association on such terms and conditions as the Managing Committee may at its discretion deem fit. 30. To sell, mortgage, exchange, lease, dispose of or otherwise deal with, all or any part of the property or funds of the Association it may at its discretion deem fit. 31. To borrow, whenever necessary by and mode with or without security, with or without interest and to purchase, redeem or pay off any such securities. 32. To employ, appoint executive secretaries and assistant secretaries, clerks, managers, coaches, professional cricketers, umpires, scorers, statisticians, groundsmen, peons, servants and other service personne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... selection of players for important matches. (n) To do any other acts in furtherance of the above objects not inconsistent there with. 8. The position for Saurashtra Cricket Association is no different. As a matter of fact, the CIT(A) has simply followed his order for Gujarat Cricket Association in this case. Be that as it may, for a ready reference, the objects of the Saurashtra Cricket Association are also reproduced below: The objects of the Association are : (a) To control the game of cricket in Saurashtra and Kutch and give its decision on all matters which may be referred to it by any District Cricket Association affiliated to Saurashtra Cricket Association. (b) To encourage the formation of District Cricket Associations and the organisation of inter - district and other tournaments. (c) To arrange, control, regulate and if necessary finance visits of Teams that are Members of the Board of Control for Cricket in India and teams of other Districts in Saurashtra and Kutch. (d) To arrange, control, regulate and finance visits of Saurashtra Cricket Team to tour States/Districts that are Members of the Board of Control for Cricket in India or elsewhere in conjunc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urnal or Journals on cricket. (q) Generally to do all such other acts and things as may seem to the Association to be convenient and/or conducive to the carrying out of the objects of the Association. 9. The assessee is also providing education for cricketers by providing for, as noted in the assessment order, "school teams, district level teams, players of all age groups, for learning the intricacies of cricket, by playing the matches and running a coaching academy for teaching finer aspects of game to the budding cricketers". The stand of the revenue authorities, relying upon the CBDT circular No. 395 [F. No. 181(5) 82/IT(A-I)], dated 24-9-1984, is that the assessee, being a society for promotion for sports, has its objects as "advancement of object of general public utility", and, for this reason, it falls in the category of charitable institutions. As a corollary to this position, it is also contended that the proviso to Section 2(15), which applies only in the context of this residuary class of objects pursued by the charitable institutions, would into play in such cases. It was in this backdrop that the assessee was put to notice that as to the assessee not be held to ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned income from the sale of advertising and ticket sales- a fact that clearly demonstrates that main income of the assessee is from entertainment of public by arranging national and international matches for a fee. The income generating activity, as is the stand of the Assessing Officer, is holding cricket matches. It was noted, for example for the assessment year 2012-13, that while the assessee has total income of ₹ 20,24,81,544, it includes income of ₹ 12,20,19,916 from hosting the cricket matches and income of ₹ 8,04,61,628 from other sources. The details of the income were stated to be as follows: The assessee is admittedly involved in promotion of cricket as game. On perusal of the income and expenditure statement of the assessee, it is evident that the assessee has a total income of ₹ 20,24,81,544/- which includes Match income of ₹ 12,20,19,916/- and other income of ₹ 8,04,61,628/-. The details of match income are given below: - Match Income Amount (Rs.) Income from India-West-indies day-night Match 3,60,84,687 Income from world cup matches 8,12,15,229 Reliance Sponsorship Income 10,00,000/- Subsidy from BCC1 37,20, 000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is in the nature of business, trade and commerce and not in the nature of education as claimed by the assessee. Therefore the assessee is covered by the provisions of Section 2(15) read with proviso 1 and 2 of the Income Tax Act. 12. Aggrieved by the stand so taken by the Assessing Officers, assessees carried the matter in appeal before the CIT(A) but without any success. Learned CIT(A) upheld the action of the Assessing Officer, and, in fact by referring to the findings in the case of Board of Cricket Control of India to the effect that it was an organized business activity being carried on by the BCCI, fortified the stand of the Assessing Officer further. The sum and substance of the findings of the authorities below is that development of cricket, as an activity, is not an educational activity, and the way and manner in which the said cricket promotion activity is being carried out is nothing but brute commerce. Learned CIT(A) also took note of the role played by the Board of Cricket Control in India, and, discussed in detail, as to how the activities carried on by the assessee amount to an activity in the nature of trade, commerce or business. A part of his extensive fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .10(20), 10(20A), 10(23), 10(29) underwent major change. Sec. 10(20A), 10(23) and 10(29) were omitted by Finance Act, 2002. Prior to omission Sec-10(23) was as under:- 10(23) - "any income of an association or institution established in India which may be notified by the Central Government in the Official Gazette having regard to the fact that the association or institution has at its object the control, supervision, regulation or encouragement in India of the games of cricket, hockey, football, tennis or such other games or sports as the Central Government may, by notification in the Official Gazette, specify in this behalf....." 6.5 Thus, by omission of sec. 10(23), the exemption hitherto enjoyed by associations/institutions for sports such as Cricket, Hockey, Football, Tennis etc. was withdrawn. By omission of Sec. 10(29) the exemption available with authority for marketing of commodities was withdrawn. But the Sec.10 (29A) continued the exemption for Coffee Board, Rubber Board, Tea Board, Tobacco Board, Spices Board, Coir Board, Agricultural and Processed Food Products Export Development Authority etc. Similarly, the Finance Act, 2008, w.e.f. 01/04/2009 inser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s. 11/12 of the Act as per the laid down procedure under the said sections. Though, it was never provided for or stated in any policy documents that these institutions/association would hereafter enjoy the benefits of the charitable institutions yet the associations like GCA, claimed exemption as if they were performing charitable activities. Even the Circular No. 395 dated 24th September, 1984 has further clarified this issue. The said circular is as follows:- "SECTION 2(15) I CHARITABLE PURPOSE Whether promotion of sports and games can be considered to be charitable purpose 1. The expression "charitable purpose" is defined in section 2(15) to include relief of the poor, education, medical relief and the advancement of any other object of general public utility. 2. The question whether promotion of sports and games can be considered as being a charitable purpose has been examined. The Board are advised that the advancement of any object beneficial to the public or section of the public as distinguished from an individual or group of individuals would be an object of general public utility. In view thereof, promotion of sports and games is considered to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ament made its intention further clear and obvious by amending the IT Act vide Finance Act, 2012 but with effect from 1/4/2009. A new section i.e. Sec-13(8) was inserted to the Act. By this amendment it was provided that benefit of Sec-11 or Sec- 12 would not be available if the receipts from the activity in the nature of trade, commerce or business or from any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, exceeded the threshold provided for in the proviso to Sec-2(15) of the Act. The application of Sec. 13(8) is dependent upon the receipts in a given year from the activity in the nature of trade, commerce or business or from any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration. The application of sec. 13(8) is for each year, independently. The benefit of sec-2(15) would be denied irrespective of the charitable nature of the objects of the trust and irrespective of whether or not the trust or institution is entitled to registration. The Act has not given any discretion to the AO in application of section 13(8). The registrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive in carrying on the activity by the institution..... The legislature is fully aware of that an institution which is incorporated for charitable purpose cannot have profit motive." (Emphasis supplied) 6.14 No contrary decision on this interpretation has been noticed. GCA has tried to negate the application of this decision in its own case by reasoning that the activities of assessee in this case are different from that of GCA. Agreed that the activities are different but the findings of Hon'ble ITAT are findings on the first proviso to section 2(15) and hence applicable to all. 6.15 These changes in Act clearly brought out that the application of proviso to sec- 2(15) is not only for the trust or institution engaged in trade, commerce or business but its activities have to be in the nature of trade, commerce or business. It means that the profit element of business may or may not be there, what is to be seen is the nature of trade, commerce or business. This difference between the business and the activities in nature of business should be kept in mind. 6.16 Further, the Parliament was clear that even if a part of the overall activity of the institution is i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide the true purpose which is trade, commerce or business or the rendering of any service in relation to trade, commerce or business. Each case would, therefore, be decided on its own facts and no generalization is possible. Assessees, who claim that their object is ' charitable purpose' within the meaning of section 2(15), would be well advised to eschew any activity which is in the nature of trade, commerce or business or the rendering of any service in relation to any trade, commerce or business." (Emphasis supplied) 8.2 The perusal of the circular reflects that the Board has emphasized on applicability of proviso to section 2(15) of the Act as a 'question of fact' of each case. To understand the facts of the appellant looking at the balance sheet and income and expenditure account of the years under consideration is not sufficient. The appellant has reflected its income from 'match income', 'other income (mainly interest on FDs)'. The appellant has reflected a substantive portion of its receipts in the balance sheet. The TV subsidy and IPL subvention has been directly taken as 'corpus' by the appellant. The receipts from BCCI a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te but are eligible to attend and participate in the meetings of the Board, nor they would be eligible to be elected as a Member of the working committee or as an office bearer or Vice President of the Board. Thus the decisions of the Working Committee are the decision of the Full Members i.e. SCAs. The working committee which is also the governing body of the Board is the only powerful committee having various representatives. All the decisions of the Board are taken by majority of votes and in the case of an equality of votes the Chairman has the casting vote. 9.4 The MOA also mentions that all the members are required to submit their accounts within stipulated time and they shall not be entitled to vote at a meeting provided a due notice in writing is given. 9.5 The BCCI/Board shall be comprised of (a) President (b) 5 Vice Presidents one from each zone (c) an Hony. Secretary (d) an Hony. Jt. Secretary and (e) an Hony. Treasurer. All the members shall be entitled to have one representative on the Board. 9.6(A) Relevant extracts from the Annual Reports of immediately preceding four years that reflect the growth of revenue of BCCI. (Source: Website of BCCI) Annual Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as against ₹ 711 crores during the year 2008-09. The IPL suffered a loss of ₹ 41.90 crores because of increase in expenses due to its shifting to South Africa. However, the CLT 20 was able to generate profit of ₹ 39.27 crores. The treasurer has informed its members that the loss of IPL has been calculated after providing ₹ 202.61 crores as IPL subvention to SCAs which were considered as expenses of IPL. During the year the BCCI has disbursed ₹ 128.45 crores on account of infrastructure subsidy. During the year it had earned media rights of ₹ 575.05 crores out of which 81.5 crores were given as TV subsidy to SCAs. Annual Report 2010-11 9.6.4 During F.Y.2010-11 BCCI have earned media rights amounting to ₹ 1047 crores out of total gross income for the year amounting to ₹ 2026 crores. Media rights comprised of more than 50% of the gross income of BCCI. Out of 1047 crores 422.94 crores were received on account of IPL and 235.57 crores were received on account of Champions League Tournament. The remaining 288.56 crores were the Media rights received by BCCI for rest of the tournaments. Out of 388.56 crores BCCI has given 237.57 cror ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BCCI to the State Cricket Associations by a rotation policy. The matches are conducted and managed by the respective state associations and over time, arrangements have evolved about the respective responsibilities, rights, shares of revenue etc. These have evolved in order to promote co-operation and unity among the member associations and by applying the principles of equity and fairness, for which the sport of cricket is renowned." 9.7.3 The BCCI in its submission dated 21/1/2013 earned subsidy paid to SCAs and TV Subvention as stated as follows:- "13.2 PAYMENTS TO STATE ASSOCIATIONS During the year, BCCI has paid amounts to the state associations under the head "TV, Subventions to Associations". This represents payment of 70% of the revenue from sale of media rights to the state associations". Whenever a foreign team visits India, the international matches such as Test and ODI are allotted by BCCI to the state cricket associations by a rotation policy. The matches are conducted and managed by the respective state associations. It is not possible for BCCI to conduct all these matches with its own limited personnel. It is dependent on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia rights. (Emphasis supplied) Financial Year Come from sale of Media Rights (Nett) Payments to State Associations % Paid 2001-02 46,00,00,000 32,20,00,000 70% 2002-03 46,00,00,000 32,20,00,000 70% 2003-04 46,00,00,000 32,20,00,000 70% 2004-05 143,48,76,209 100,44,13,347 70% 2005-06 320,72,29,934 224,50,60,954 70% 2006-07 296,16,61,646 211,53,63,213 70% 2007-08 531,27,81,225 371,89,46,858 70% 2008-09 438,98,30,523 307,28,81,366 70% 2009-10 545,00,66,045 381,50,46,232 70% 2010-11 339,39,09,746 237,57,36,822 70% Even in the event that exemption under section 11 is denied, the payments to state associations must be allowed as a deduction, as expenditure laid out or expended wholly and exclusively for the purpose of earning such income, it must be appreciated that in order to earn revenues, BCCI was and continues to be highly dependent on the state associations. BCCI does not have the infrastructure and the resources to conduct the matches by itself and is dependent on the state associations to conduct the matches. The income from media rights is dependent on the efforts of the state associations in con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... structure faculties, facilities for spectators, conducting coaching camps, conducting local tournaments etc. 13.5 Thus, major part of the revenue is diverted as grants to state cricket associations. The amount distributed in this year ₹ 381,50,46,232/- as T.V. Subventions to Associations + ₹ 202,60,80,000/- as T.V. Subventions to Associations from IPL + ₹ 1,284,534,159/- infrastructure subsidy to Associations..." 13.6 The BCCI has distributed TV Subventions, subsidy/staging subsidy and infrastructure subsidy to its Associations. By this, BCCI has distributed part of its income of all its members associations. This is nothing but distribution of profit to its members. Further the A.O has held as follows : 13.11 Further, infrastructure subsidy, TV Subvention and as subsidy/staging subsidy given by the assessee to State Association is not actually spent by the assessee it has simply been given to State Association. This is only be convection and faith on State Association but no proper control is there. Since there are no proper financial control of BCCI on its association to see that the money given are actually spent for the purpose of its object, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the BCCI remained powerful in its negotiations on media rights mainly for the reason that all its full Members or SCAs had authorized BCCI to negotiate on their behalf. This is apparent from the submission of BCCI to its AO. This had helped BCCI to negotiate from the position of strength. What was at stake was large quantum of share of revenue that the SCAs had started getting as TV subsidy due to the negotiations by BCCI on their behalf. 9.7.7 The conclusions drawn by the AO of BCCI are in the perspective of assessment proceeding of BCCI. These assessment proceedings only help us in understanding the perspective of BCCI with regard to the TV subsidy and IPL subvention. No support is drawn in the proceedings of the appellant from the findings of AO of BCCI. 98 (C) BCCI - Annual General Meetings (AGM) During the course of appellate proceedings the GCA has submitted the minutes of Annual General Meetings (AGM) of BCCI normally held in the month of September of each year. The relevant issues in the Minutes are flagged hereunder: 9.8.1 AGM for FY 2000-01 It was in 2001 that the BCCI seems to have introduced the Rotation Policy in the allocation of venues for cric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly available for the calculation for the gross revenue share to the players from the year 2005-06. The definition of gross revenue for the purpose of arriving at 20% distribution to player is as follows :- • Sale of Sponsorship rights, excluding agents, if any. • Sale of Media rights including TV (net of production cost) radio, internet, middle media and other mechanism designated to utilise digital technology excluding the agents fees, if any, and share of State Associations etc..." (Emphasis supplied) 9.8.3 AGM for FY 2007-08 The total TV subsidy amount payable to associations for the year 2007-08 is ₹ 3,71,89,46,858/-. It was resolved that 70% of the franchisee fees received will be distributed to associations as BCCI-IPL subvention. The subventions payable to associations for the season 2008 are as under :- Staging: ₹ 10 crores Non staging; ₹ 7.21 crores The total BCCI-IPL subvention payable to associations for the season 2008 is ₹ 202.60 crores 9.8.4 AGM for F.Y.2008-09 Item No.4 - Adoption of the report of treasurer and the audited accounts for the year ending 31/3/2009. The Hony. Treasurer informed the hou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... differently in their financial statements by at least three SCAs that have presence in the state of Gujarat viz. Baroda Cricket Association, Saurashtra Cricket Association and the appellant. The treatment given by the appellant is already under consideration. Baroda Cricket Association (BCA) for A.Y.2012-13 and Saurashtra Cricket Association for A.Y.2012-13 have filed appeals before me. During the appellate proceedings this issue was also discussed with the AR of GCA. It was observed that Baroda Cricket Association has treated the TV Subsidy received from BCCI as corpus and has treated IPL Subvention received from BCCI in the income and expenditure account unlike GCA. Further BCA has also offered sale of tickets of ODI as its income and have paid taxes on the same. The Saurashtra Cricket Association on the other hand has reflected Subvention received from BCCI as its income from other sources. Similarly, the TV Subsidy received from BCCI is also shown under the head income from other sources and has not treated the same as corpus like GCA. Saurashtra Cricket Association has reflected the amount received from BCCI under the Infrastructure Scheme as its corpus whereas GCA has taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e relevant information with regard to the receipt of funds from BCCI to SCAs has been reproduced. BCCI and SCAs on the issues of their management, BCCI & its relationship with SCAs, controversies on venues of matches, unfortunate incidents of match fixing etc. have been in the center of controversies. Otherwise there had been no reason for the intervention from the Hon'ble Apex Court to order a very intrusive mandate to the Lodha Committee set up by it. There is no doubt that BCCI is managed by the Full Members. The decisions taken by the Working Committee are the decisions which are endorsed by the full members. All the full members are equally responsible and partner in the decision making process. BCCI and full members jointly take efforts for the cricketing activities in the country. It is the full members who have authorized BCCI to undertake the fixation of tour programmes or the matches at international as well as domestic level. That includes, Test Matches, ODI, T20 matches, Ranji Trophy, Deodhar Trophy, Duleep Trophy, Vijay Hazare Trophy matches etc. In the process it is the SCAs that provide and facilitate the actual conduct of these matches. Although the matches are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rding to BCCI the arrangements of conducting cricketing activities have evolved over time and are based on the cooperation and unity amongst the SCAs. 10.5 The basis for transfer of funds on account of TV subsidy and the IPL subvention from BCCI to SCAs is same. The BCCI, itself has not treated that these funds belong to it. BCCI has mentioned in Annual Report for 2007-08 that ₹ 203 crores of IPL subventions being 70% of franchisee fees was proposed to be given as subvention to SCAs. This is apparent from submissions made by the BCCI to its AO as well as from the decision taken during the AGMs. BCCI has categorically mentioned to its AO as follows: "In respect of revenues from sale of media rights, an arrangement has evolved over time. Until 1991-92 the income from media rights was meager. With the growth in income from media rights, it became necessary to optimize the arrangement for sale of media rights. For a Test series or ODI series conducted in multiple centers and organised by BCCI and multiple state associations, it was found that if each state association were to negotiate the sale of rights to events in its centre, its negotiating strength would be low ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the year 2005-06." (Emphasis supplied) 10.7 From above minutes the position becomes clear in respect of to whom these receipts belong to 70% is that of SCAs and 30% is that of BCCI. As the receipts from the sale of media rights were that of BCCI as well as SCAs, similarly the income from the commercial activity of IPL is the joint income of BCCI and SCA/full/eligible members. It is discernible from the minutes of various AGMs that distribution of the revenue from media rights as well as IPL subvention are part of the same agenda item. The only difference is that the net media rights revenue, is shared by all SCAs as well as an extra share of revenue goes to those SCAs staging the matches whereas the IPL revenue is shared equally amongst all the SCAs. The BCCI keeps 30% of the net revenue with itself. It is discernible from the various Annual Reports of BCCI, minutes of AGMs of BCCI as well as the submissions of BCCI in its own assessment proceedings that there has been a consistency in the stand taken by it. The consistency has been on the matter that 70% of the receipts from sale of media rights and IPL activities belong to SCAs and not to BCCI. The consistency is on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... promotion of cricket. It is submitted that there is not even a single object of the association which does not deal with promotion of cricket. Learned counsel then invited our attention to the fact that all the cricket matches under the Indian Premier League as indeed the other cricket matches, such as one day international matches and the international test matches, are organized by the Board of Cricket Control of India (BCCI) and not by the cricket associations before us. He submits that the entire case of the revenue authorities is that these test matches are organized on the commercial lines, and, for this reason, the cricket associations before us must be held to have been hit by proviso to Section 2(15), but then, according to the learned counsel, what this argument overlooks is the fact that no such activities of organizing the matches are carried on by the local cricket associations. Therefore, going by the learned counsel, if at all the allegation of the revenue authorities is to lead to some logical conclusion in respect of the organizing bodies, that is in respect of the BCCI and not the local cricket associations. He hastens to add that as he is representing a local cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmits that the expression "education", in the context of section 2(15), is required to be interpreted in a broader sense rather than confining it to the formal education in pure arts and humanities or science and commerce in schools and colleges. He submits that we are living in a world in which the connotations of "education" extend to the skills that can earn livelihood, and rightly so, since keeping the education confined to traditional subjects will be contrary to the values of the contemporary society. It is submitted that cricket, as a career, has more potential than perhaps any other traditional subject or even any other field of art, and, therefore, education in cricket cannot be relegated to insignificance by not treating it as education at all. He submits that physical education is also education, and cricket is a part of physical education. Learned counsel than takes us through the judgment of Hon'ble jurisdictional High Court in the case of Gujarat State Cooperative Union Vs CIT [(1992) 195 ITR 279 (Guj)], wherein elaborating upon Hon'ble Supreme Court's observations in the case of Lok Shiksha Trust Vs CIT [(1975) 101 ITR 234 (SC)], Their Lordships have given much wider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of ITAT Delhi Bench 'A' in the case of Deputy Director of Income Tax vs. All India Football Federation [2015] 62 taxmann.com 362 (Delhi - Trib.) [2015] 43 ITR(T) 656 (Del), and order of ITAT Mumbai Bench 'SMC' in the case of Dahisar Sports Foundation vs. Income Tax Officer (Exemptions)-(1), Mumbai [2017] 167 ITD 710 (Mum). The common thread in all these decisions, according to the learned counsel, is that despite the fact that a case was made out in all these cases for denial of exemption under section 2(15) by invoking the proviso to the said sub section and by alleging that the activity of the assessee cricket associations was in the nature of trade, commerce or business, these cricket associations have been held to be eligible for exemption under section 11 and that proviso to Section 2(15) has been held to be not applicable on the facts of these cases. He suggests that the activities of these cricket associations are no different than these cricket associations which have been successful in their claims for exemption under section 11. We are thus urged to uphold the plea of the assessee, to hold that the proviso to Section 2(15) was not applicable on the facts of these cases. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pose of Section 2(45) rather than application of Section 2(15). On the Entertainment Society of Goa vs. CIT [2013] 34 taxmann.com 210 (Panaji), learned counsel points out that this decision has been distinguished by another coordinate bench decision in the case of Rajasthan Cricket Association (supra). Similarly, as regards Punjab Seed Certification Authority Vs CIT [(2013) 37 taxmann.com 81 (Chandigarh)], our attention was invited to the fact that this judicial precedent is distinguished by Hon'ble Delhi High Court in the case of Bureau of Indian Standards Vs DGIT [(2013) 358 ITR 78 (Del)]. On the strength of these submissions, learned counsel contended that the judicial precedents cited by the authorities below are of not of any support to the revenue's case. 19. Shri Mehul Patel, learned counsel appearing for Gujarat Cricket Association, graciously adopts the arguments advanced by Shri Soparkar, and says there can be little to add to these comprehensive arguments. He, nevertheless, reiterates those points. He submits that as per the objects of assessee institution, it is engaged in (i) providing infrastructure for the game of cricket; (ii) education for cricketers for learning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mination and though the primary method of sitting in a class-room may remain ideal for most of the initial education, it may become necessary to have a different outlook for further education. It is not necessary to nail down the concept of education to a particular formula or to flow it only through a defined channel. Its progress lies in acceptance of new ideas and development of appropriate means to reach them to the recipients." A reference is then made to Hon'ble jurisdictional High Court decision in the case of Director of Income Tax (Exemptions) v. Ahmedabad Management Association 366 ITR 85(Guj) wherein Their Lordships have referred to the Supreme Court decision in the case of Sole Trustee Lok Shikshan Trust (supra) and have held that 'Education' under section 2(15) does not have a restricted meaning whereby only normal schooling i.e. 'scholastic' education is covered. It has been held that section 2(15) covers education which is provided in non-scholastic manner also. A reference is then made to Hon'ble Delhi High Court in the case of Delhi Music Society 357 ITR 265(Delhi) wherein it is said to have been held that teaching and promoting all forms of music and dance, wester ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 11 of 2008 dated 19.12.2009; the relevant portion of which reads as under: "2.1 The newly inserted proviso to section 2(15) will not apply in respect of the first three limbs of section 2(15) i.e. relief of the poor, education or medical relief. Consequently, where the purpose of a trust or institution is relief of the poor, education or medical relief, it will constitute charitable purpose, even if it incidentally involves the carrying on of commercial activities." 21. It is submitted that the appellant is involved in cricket coaching and promotion which is a form of 'education' and thereby qualifying itself as a 'charitable institution' under section 2(15). Since the appellant is carrying on an 'educational' activity, according to the learned counsel, the proviso to section 2(15) is not applicable. 22. Learned counsel adds that, assuming without admitting that the appellant is not involved in carrying out educational activities but is involved in advancement of any other object of general public utility, the submissions are made with regard to applicability of the aforesaid proviso in the present case are as follows: In the assessment order, it is concluded that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate of Gujarat. None of the objects of the appellant are commercial or in the nature of business or trade and all the activities are undertaken with a sole view to promote cricket and not to carry on any activity in the nature of trade, commerce or business. Meaning of profit generating activity The learned officer observed that the appellant is engaged in 'profit generating activity' and therefore ineligible to be termed as 'charitable organisation' The object of general public utility to be regarded as 'charitable' in nature was not to involve the carrying on of any activity of profit. In other words, profit making is a precondition to deny exemption to the concerned entity. The Supreme Court in the case of Surat Art Silks Organisation v CIT (1980) 121 ITR 1 (SC) held that a charitable organisation cannot be expected to balance its account in such a manner that the income for the year matches exactly with the expenditure. Incidental generation of any surplus in the course of one's activity without an intention to make profit, will not make the activity a business. One may refer to the decision of the Supreme Court in Sole Trustee, Loka Shikshana Trust v. CIT, [1975] 101 IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is bad in law and is not tenable. Being an assessee which has always been held to be charitable cannot be jettisoned on certain interpretation and inferences. The objective of the association, conduct and documentation sufficiently spell out that the appellant is a charitable organisation striving towards welfare and promotion of the game of cricket. We draw Your Honour's kind attention to the recent Gujarat High Court decision in the case of Director of Income Tax (Exemption) Vs. Sabarmati Ashram Gaushala Trust (2014) 362 ITR 539 (Guj). We reproduce here below the relevant paragraphs from the said decision: "6. The legal controversy in the present Tax Appeal centers around the first proviso. In the plain terms, the proviso provides for exclusion from the main object of the definition of the term "Charitable purposes" and applies only to cases of advancement of any other object of general public utility. If the conditions provided under the proviso are satisfied, any entity, even if involved in advancement of any other object of general public utility by virtue to proviso, would be excluded from the definition of "charitable trust". However, for the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n his case, CIT(A) has simply followed his decision in the case of Gujarat Cricket Association. Whatever, therefore, is decided in the case of Gujarat Cricket Association must mutatis mutandis follow in this case as well. Learned counsel submits that the arguments put forward by his predecessors hardly leave any area uncovered, and that he has little to add. Having said that learned counsel adds that there is no commercial activity which is pursued by the association and yet all that has been put against the assessee is that the assessee is carrying on business, trade and commerce in the name of promoting cricket. Learned counsel submits that cricket is a game of masses in this country and the number of people following cricket is so high that anything doing with cricket will result in mass public involvement of huge magnitude. This popularity cannot be put against the cause of cricket promotion. Learned counsel submits that imparting training in sports is nothing but education activity and therefore the assessee would fall in the first limb of definition of "charitable purpose" as defined u/s.2(15) of the Act and not under the residual clause of 'the advancement of any other objec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vs. Surat Art Silk Cloth Manufacturers Association reported in 121 ITR 1 (SC) that (a) the primary or dominant purpose of the trust or institution has to be examined to determine whether the said trust / institution is involved in carrying out any activity for the profit and (b) if the "object" of the trust or institution is to carry out object of general public utility and this is the primary or dominant purpose and not carrying on any activity for profit, the same would satisfy the requirements of S.2(15) of the Act. It is further submitted that (a) first proviso to S.2(15) of the act should not generalized to each and every facts of the case where there is a surplus over the expenditure in respect of the activities or objects carried out by the Trust which are in any case of the charitable purpose, (b) the cardinal principle is the predominant object of the Trust. If the predominant object of the Trust is of charitable nature and with no-profit motive, the said activities cannot be treated as trade, commerce or business merely because some surplus has remained left over the expenditure to carry out such activities. The essence of trade, commerce or business is profit motive and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee and therefore, even if the view against the assessee is plausible and probable, the view in favour may kindly be adopted. In support of this proposition, learned counsel for the assessee relies upon a host of judicial precedents including in the cases of Mysore Minerals Ltd. V CIT 239 ITR 775 (SC), Orissa State Warehousing Corporation v CIT 237 ITR 589 (SC), CIT v. Podar Cement Pvt. Ltd. and Others. 226 ITR 625 (SC), CIT v Vegetable Products Ltd. 88 ITR 192 (SC), and CIT v Naga Hills Tea Co. Ltd. 89 ITR 236, 240 (SC). We are thus urged to follow the division bench decisions in the cases of other cricket associations and hold that the assessee is not hit by proviso to Section 2(15). 28. Shri Vaishnav, learned Commissioner- DR, begins by pointing out how the game of cricket has undergone huge paradigm shift as a sport and as a business. He points out that the control of cricket is in a few powerful hands and that cricket is completely monopolized by the Board of Cricket Control in India. It is then submitted that the BCCI is not a rank outsider for these cricket associations but the apex bodies of these cricket associations. These cricket associations act in tandem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inciple, according to the learned Departmental Representatives, is clear. When you are here to make money from such activities on commercial lines, in the garb of pursuing advancement of an object of general public utility, you may as well pay tax on the earnings from such activities. There is no dispute that the cricket is now biggest source of making money and, therefore, the income of the entities organizing cricket events should also be taxed. Learned Departmental Representative then takes us through the orders of the authorities below, and places his vehement reliance on the same. Learned Commissioner then submits that one has to bear in mind the difference between the main activity and the auxiliary activity. He submits that investing hundreds of crores of rupees in cricket stadiums cannot be to teach cricket; it can only be to build infrastructure for reaping commercial profits out of exhibiting cricket matches, and, if that be so, the cricket education is not the predominant or core activity of the assessee. We cannot be so naïve, according to the learned Commissioner, to be oblivious of these ground realities. We are thus urged to hold that the appellants before us ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shiarpur Improvement Trust Vs ACIT [(2015) 155 ITD 570 (Asr)], wherein, speaking through one of us (i.e. the Vice President), the coordinate bench has, inter alia, observed as follows: 14. Before we address ourselves to the facts of this case, let us analyse the relevant legal provisions. Section 2 (15), which defines 'charitable purposes' though in an inclusive rather than an exhaustive manner, had a rather quiet existence, unaffected by the frequent amendments to the Income Tax Act 1961, till 1st April 1984. Vide Finance Act, 2013, and with effect from 1st April 1984, the words 'not involving the carrying on any activity for profit' were deleted from Section 2(15), and, with this amendment, this definition was as follows: "Charitable purpose" includes relief of the poor, education, medical relief, and the advancement of any other object of general public utility: 15. Vide Finance Act, 2008, the words "preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest)", were added and, on a more relevant note, a new proviso (i.e. fist proviso) was added to this provision, c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other object of general public utility' i.e., the fourth limb of definition of 'charitable purpose' contained in s. 2(15). Hence, such entities will not be eligible for exemption under s. 11 or under s. 10(23C) of the Act, if they carry on commercial activities. Whether such an entity is carrying on an activity in the nature of trade, commerce or business is a question of fact which will be decided based on the nature, scope, extent and frequency of activity. 3.1 There are industry and trade associations who claim exemption from tax under s. 11 or on the ground that their objects are for charitable purposes as these are covered under the 'any other object of public utility'. Under the principle of mutuality, if trading takes place between the persons who are associated together and contribute to a common fund for the financing of some venture or object, and in this respect have no dealings or relations with any outside body, then the surplus returned to such persons is not chargeable to tax. Therefore, where industry or trade associations claim both to be charitable institutions as well as mutual members, these would not fall under the purview of s. 2(15) owing to the princi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e' and 'each case will have to decided on its facts'. The question then arises whether on the present set of facts it can be said that the assessee was engaged in trade, commerce or business or in rendering of a service to trade, commerce or business. 17. Therefore, as the legal position stands as on now, even after the insertion of the above two provisos, as long as the object of general public utility is not merely a mask to hide true purpose or rendering of any service in relation thereto, and where such services are being rendered as purely incidental to or as subservient to the main objective of 'general public utility', the carrying on of bonafide activities in furtherance of such objectives of 'general public utility' cannot be hit by the proviso to s. 2(15). By the Finance Act 2015, these two provisos also stand substituted, with effect from 1st April 2016, a new proviso to Section 2(15). This new proviso is as follows: Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c utility and engagement in trade, commerce and business etc. were thus seen as mutually exclusive in the sense that either the assessee was pursuing the objects of general public utility or pursuing trade, commerce or business etc. in the garb of pursing the objects of general public utility. As the CBDT circular itself demonstrates, there could not have been any situation in which the assessee was pursing the objects of general public utility as also engaged in trade, commerce of business etc. In the new proviso, however, even when the assessee is engaged in the activities in the nature of trade, commerce or business etc. and "such activity is undertaken in the course of actual carrying out of such advancement of any other object of general public utility" it is excluded from the scope of charitable purposes only when "the aggregate receipts from such activity or activities during the previous year, do not exceed twenty per cent of the total receipts, of the trust or institution undertaking such activity or activities, of that previous year". In other words, even when the activities are in the course of advancement of any other object of general public utility, but in the nature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncidental to the attainment of the objectives of the trust or institution", that such an income will "not be exempt from tax". The Tribunal noted that there is no finding to that effect by any of the authorities and that it is not even the case of the revenue that the activities of the trusts do not serve the objects of the general public utility. The Tribunal held that the activities of the trust fall within the category "objects of general public utility". It was also held that separate books of account for the business activities were maintained. This was not challenged before us. It is not necessary in these appeals to decide the effect of the amendment to Section 2(15) introduced with effect from 01.04.2016. The Tribunal then dealt with the main contention of the revenue that the assessee was involved in the activities of developing and selling the residential and commercial units with the sole aim of making profits. The conclusions of the Tribunal in this regard are as follows; the profit on sale does not necessarily imply profit motive in the activities of the assessee. What is important is the motive or the predominant object of the activities. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oric interest and advancement of any other object of general public utility. Proviso to Section 2 (15) and further proviso whereof inserted by Finance Act 2010 w.e.f 1st April 2009 read, thus - "Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention of the income from such activity. Provided further that the first proviso shall not apply if the aggregate value of the receipts from the activities referred to therein is twenty five lakh rupees or less in the previous year." 6. The legal controversy in the present Tax Appeal centers around the first proviso. In the plain terms, the proviso provides for exclusion from the main object of the definition of the term "Charitable purposes" and applies only to cases of advancement of any other object of general public utility. If the conditions provided under the proviso a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23C) of the Act if they carry on commercial activities. Whether such an entity is carrying on any activity in the nature of trade, commerce or business is a question of fact which will be decided based on the nature, scope, extent and frequency of the activity. 3.1 There are industry and trade associations who claim exemption from tax under section 11 on the ground that their objects are for charitable purpose as these are covered under ' any other object of general public utility'. Under the principle of mutuality, if trading takes place between persons who are associated together and contribute to a common fund for the financing of some venture or object and in this respect have no dealings or relations with any outside body, then any surplus returned to the persons forming such association is not chargeable to tax. In such cases, there must be complete identity between the contributors and the participants. Therefore, where industry or trade associations claim both to be charitable institutions as well as mutual organizations and their activities are restricted to contributions from and participation of only their members, these would not fall under the purview of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the sole consideration for judging whether any activity is trade, commerce or business - particularly if generating ' surplus' is wholly incidental to the principal activities of the trust; which is otherwise for general public utility, and therefore, of charitable nature. …………… ……………………………. 11. We are wholly in agreement with the view of the Tribunal. The objects of the Trust clearly establish that the same was for general public utility and where for charitable purposes. The main objectives of the trust are - to breed the cattle and endeavour to improve the quality of the cows and oxen in view of the need of good oxen as India is prominent agricultural country; to produce and sale the cow milk; to hold and cultivate agricultural lands; to keep grazing lands for cattle keeping and breeding; to rehabilitate and assist Rabaris and Bharwads; to make necessary arrangements for getting informatics and scientific knowledge and to do scientific research with regard to keeping and breeding of the cattle, agriculture, use of milk and its various preparations, etc. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssociation, which are reproduced earlier in our order, and it is not even the case of the revenue that these objects have anything to do with any trade, commerce or business; these objects are simply to promote cricket. The trigger for invoking proviso to Section 2(15), as Shri Soparkar rightly contends, has to an activity of the assessee which is in the nature of trade, commerce or business. However, the case of the revenue authorities hinges on the allegation that the way and manner in which cricket matches are being organized, particularly the IPL matches, the activity of organizing cricket matches is nothing but brute commerce. Undoubtedly, it would appear that right from the time Kerry Packer started his World Series Cricket in 1977, there has been no looking back in commercialization of cricket and the impact of this commercialization has not left Indian cricket intact. The Indian Premier League and the rules of the game being governed by the dictates of commercial considerations may seem to be one such example of commercialization of Indian cricket. The difficulty for the case of the revenue before us, however, is that these matches are not being organized by the local crick ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns is nothing but appropriation of profits. What can be taxed is accrual of profits and not appropriation of profits. In any event, distinction between the cricket associations and the BCCI cannot be ignored for the purposes of tax treatment. There is no dispute that the matches were organized by the BCCI, and the assessee cannot thus be faulted for the commercial considerations said to be inherent in planning the matches. As we make these observations, and as we do not have the benefit of hearing the perspective of the BCCI, we make it clear that these observations will have no bearing on any adjudication in the hands of the BCCI. Suffice to say that so far as the cricket associations are concerned, the allegations of the revenue authorities have no bearing on the denial of the status of 'charitable activities' in the hands of the cricket associations before us- particularly as learned Commissioner has not been able to point out a single object of the assessee cricket associations which is in the nature of trade, commerce or business, and, as it is not even in dispute that the objects being pursued by the assessee cricket associations are "objects of general public utility" under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as Tamilnadu Cricket Association Vs CIT [(2014) 360 ITR 633 (Mad)]. As regards Cricket Association of Bengal judgment (supra), that was a case in which admittedly no training, coaching or assistance was provided to the players or aspiring players and the association was formed only for watching the matches by making payment. It was on these facts that the association was held to be not for any object of general public utility. This case has no relevance in the present context since admittedly even the CBDT circular treats the cricket associations as pursuing objects of general public utility and the dispute is confined to the alleged element of trade, commerce and business in so pursuing the objects of general public utility. As regards peculiarities of Cricket Association of Bengal case (supra), the following observations made by Hon'ble Court are relevant: The facts of the present case are that the assessee Association merely held certain demonstration or exhibition matches. It does not provide any training in the game of cricket to novices or any advanced training for persons who are already practised players. Its activities outside the holding of the exhibition matches is li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f which are set out earlier in this order, holding that the proviso to Section 2(15) cannot be invoked in the cases of such similarly placed cricket associations. Respectfully following the same, and also for the detailed reasons set out above, we uphold the plea of the assessee. We are not reproducing extracts from these decisions, for the sake of brevity, but we adopt, and concur with, the reasoning of these decisions. When proviso to Section 2(15) cannot be invoked on the facts of these cases, the benefits of Section 11 and 12, which were declined only by invoking the proviso to Section 2 (15), could not have been declined on the facts of these cases. 41. We have noted that all the learned representatives have advanced detailed arguments on the proposition that since the assessee cricket associations are engaged in educational activities, it is not really material whether or not the assessee has engaged itself in the activities in the nature of trade, commerce or business. However, in the light of our categorical finding that the assessee cricket associations were not really engaged in the activities in the nature of trade, commerce or business, it is not really necessary to ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submissions of the assessee with relevant evidences in respect of the claim that the amount received from BCCI, ₹ 20,69,60,338/- is towards corpus donation. Hon. CIT (Appeals) has erred in not considering the BCCI AGM resolution which provides that all future payments by BCCI shall be towards corpus by using word 'Henceforth'. (b) Alternatively, the learned CIT(A) has erred in law and on facts when the status of the assessee is held to be AOP and Section 2(15) held to be not applicable, then as per the provisions of Sec.2(24) (iia) r.w.s. 13(8) and 56, the corpus donation of ₹ 20,69,60,338/- cannot be added as income. 49. As regards grievance raised by the assessee in ground no. 3(a), we have already decided this issue in favour of the assessee, vide our order of even date for the assessment years 2004-05 to 2007-08, and we have observed as follows: 12. So far as this grievance of the assessee is concerned, the relevant material facts are like this. The assessee before us is a cricket association, registered under the Societies Registration Act 1860, and is engaged in promotion of cricket in specified areas of Gujarat State. In the course of the reassessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As per section 11(1)(d), a written specific direction is necessary to claim it as corpus donation. For a donation as a corpus donation, a written document with specific direction from the donor should be obtained and should accompany the donation from the donor. In absence of written direction, for a donation in a given assessment year, a donation would not be considered as a corpus donation and the organization (in this case, GCA) would not be entitled to claim full exemption. To add, donation covered by a written document but without any specific direction cannot be claimed as corpus donation 13. The assessee is not satisfied and is in further appeal before us. 14. We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of the applicable legal position. 15. We find that, at pages 46 and 47 of the paperbook, the assessee has filed specific confirmations to the effect that these amounts were corpus donations. We have also perused the BCCI resolution no 5 dated 29th September 2001 which specifically states that the TV subsidies should henceforth be sent to the Member Associations towards "corpus funds". There is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant evidences in respect of the claim that the amount received from BCCI ₹ 2,13,34,033/-, being infrastructure subsidy is towards capital receipt, when the amount being in the nature of Grant. Hon. CIT(A) has erred in stating that assessee has offered no rebuttal to the same (Para 39 of CIT(A) order), (b) Alternatively, the learned CIT(A) has erred in law and on facts when the status of the assessee is held to be AOP and Section 2(15) held to be not applicable, then as per the provisions of Sec. 2 (24) (iia) r.w.s. 13(8) and 56, the corpus capital receipt of ₹ 2,13,34,033/- cannot be added as income. 53. So far as this grievance of the assessee is concerned, the relevant material facts are like this. During the course of the assessment proceedings, the Assessing Officer noted that the assessee has received infrastructure subsidy of ₹ 3,52,86,521 from the BCCI, out of which the assessee has utilized the same only to the extent of ₹ 1,39,52,488 by way of payment to District Cricket Association, and, therefore, the balance amount of ₹ 2,13,34,033 is taxable in the hands of the assessee. Aggrieved, assessee carried the matter in appeal before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y discussion of the claim of the assessee. 58. Learned counsel submits that as there was no adjudication on this grievance raised before the CIT(A), the matter may be restored to the file of the CIT(A) for adjudication on merits. This plea is not opposed by the learned DR. 59. With the consent of the parties, and in the light of the above discussions, the matter is restored to the file of the CIT(A) for adjudication on merits. 60. Ground no. 5 is thus allowed for statistical purposes. 61. In ground no. 6, the assessee has raised the following grievance: The learned CIT(A) has erred in law and on facts in holding that deprecation is not to be allowed on assets purchased in prior years, which amount of purchase has been allowed (when no such capital expenses are allowed in prior years) and has erred in restricting the depreciation on current year's purchases. It is claimed that even if full purchase cost is allowed (not allowed on facts) in prior years, as per judicial pronouncements, depreciation on such assets is to be allowed. 62. Learned representatives fairly agree that this issue now stands concluded by Hon'ble Supreme Court's judgment in the case of CIT Vs Rajasth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so claimed depreciation on furniture @ 5%. The question which arose before the Court for determination was : whether depreciation could be denied to the assessee, as expenditure on acquisition of the assets had been treated as application of income in the year of acquisition? It was held by the Bombay High Court that section 11 of the Income-tax Act makes provision in respect of computation of income of the Trust from the property held for charitable or religious purposes and it also provides for application and accumulation of income. On the other hand, section 28 of the Income-tax Act deals with chargeability of income from profits and gains of business and section 29 provides that income from profits and gains of business shall be computed in accordance with section 30 to section 43C. That, section 32(1) of the Act provides for depreciation in respect of building, plant and machinery owned by the assessee and used for business purposes. It further provides for deduction subject to section 34. In that matter also, a similar argument, as in the present case, was advanced on behalf of the revenue, namely, that depreciation can be allowed as deduction only under section 32 of the In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on in respect of those assets cannot be taken into account. This view of the Tribunal has been confirmed by the Bombay High Court in the above judgment. Hence, Question No. 2 is covered by the decision of the Bombay High Court in the above Judgment. Consequently, Question No. 2 is answered in the Affirmative i.e., in favour of the assessee and against the Department." 2. After hearing learned counsel for the parties, we are of the opinion that the aforesaid view taken by the Bombay High Court correctly states the principles of law and there is no need to interfere with the same. 3. It may be mentioned that most of the High Courts have taken the aforesaid view with only exception thereto by the High Court of Kerala which has taken a contrary view in 'Lissie Medical Institutions v. CIT [2012] 24 taxmann.com 9/209 Taxman 19 (Mag.)/348 ITR 344'. 4. It may also be mentioned at this stage that the legislature, realising that there was no specific provision in this behalf in the Income-tax Act, has made amendment in Section 11(6) of the Act vide Finance Act No. 2/2014 which became effective from the Assessment Year 2015-2016. The Delhi High Court has taken the view a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, the ITA No 1257/Ahd/13, i.e. Gujarat Cricket Association's appeal for the assessment year 2009-10, is thus partly allowed in the terms indicated above. ITA No. 3303/Ahd/16 69. We now take up appeal filed by the Gujarat Cricket Association for the assessment year 2010-11. 70. In ground nos. 1 the assessee has raised the following grievances: The learned A.O. has erred in law and on facts in applying Proviso to section 2(15) that assessee is engaged in activity in the nature of business and consequently section 13(8) of Income Tax Act, 1961 and there by rejecting the applicability of section 11 and 12 claimed by the assesses and the Hon'ble CIT(Appeals) has erred in confirming the decision of learned A.O. 71. We have, in our detailed analysis earlier in this order, held that the proviso to Section 2(15) does not come into play on the facts of these cases. Accordingly, we uphold the plea of the assessee to this extent. The assessee is thus held to be carrying out 'charitable activity' within the meanings of that expression under section 2(15) and, accordingly, the assessee is entitled to relief under section 11. 72. Ground no. 1 is thus allowed. 73. In ground no. 2, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear 2009-10. We see no reasons to take any other view of the matter for this assessment year. Respectfully following the stand taken for the assessment year 2009-10, we uphold the plea to that extent. As regards allowing the capital expenditure towards object of trust, that issue is infructuous at this stage and will come up for consideration before the Assessing Officer while giving effect to this order and computing income in terms of the Section 11. The AO shall deal with the same by way of a speaking order. 78. Ground nos. 3 and 4 are allowed in the terms indicated above. 79. In ground no. 5, the assessee has raised the following grievance: The learned A.O. has erred in law and on facts in not allowing 15% of income as per provisions of Act by not considering the addition made to the income (Though such addition is not accepted by assessee) and Hon. CIT(A) has erred in law and on facts in not accepting the claim of the assessee. 80. As regards this grievance, all that learned counsel prays is that a direction may be given to compute the income as per provisions of section 11 of the Act, after giving deduction of 15%. Learned Departmental Representative does not oppose the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the assessee was not engaged in any activity in the nature of trade, commerce or business, we see no need to deal with this alternative plea of the assessee. The grievance of the assessee is thus dismissed as infructuous. 93. Ground no. 2 is dismissed as infructuous. 94. In ground nos. 3 and 4, which we will take up together, the assessee has raised the following grievance: 3. (i) The learned A.O. and Hon'ble CIT( Appeals) have erred in law and in facts in rejecting the assessee's claim that various amounts received from BCCI, viz. T.V. Subsidy, IPL subvention etc are corpus donations which have been credited as capital receipts and holding that it is an income received from BCCI. (ii) The learned A.O. and Hon'ble CIT(Appeals) have erred in law and on facts in rejecting the above claim of corpus donations even though the learned A.O. in the case of BCCI has held that the amounts paid to various State Cricket Associations in the form of T.V, Rights, IPL subsidy etc is a voluntary payment by BCCI and when such distribution by BCCI has not been granted as a deduction to BCCI by it's A.O. (ii) Alternative Ground of Appeal. The learned A.O. and Hon'bl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven to compute the income as per provisions of section 11 of the Act, after giving deduction of 15%. Learned Departmental Representative does not oppose the prayer. We, therefore, direct the Assessing Officer accordingly. 102. Ground no. 6 is allowed in the terms indicated above. 103. In ground no. 7, the assessee has raised the following grievance: The learned A.O. has erred in law and on facts in not allowing the claim of mutuality vis-a-vis the income of members' club activity as claimed by the assessee and Hon'ble CIT(appeals) has erred in law and on facts in not accepts claim of assessee. 104. Learned counsel submits that as there was no adjudication on this grievance raised before the CIT(A), the matter may be restored to the file of the CIT(A) for adjudication on merits. This plea is not opposed by the learned DR. 105. With the consent of the parties, and in the light of the above discussions, the matter is restored to the file of the CIT(A) for adjudication on merits. 106. Ground no. 7 is thus allowed for statistical purposes. 107. In the result, ITA No. 3304/Ahd/16, i.e. appeal of the assessee for the assessment year 2011-12 is partly allowed in the terms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luntary payment by BCCI and when such distribution by BCCI has not been granted as a deduction to BCCI by it's A.O. (ii) Alternative Ground of Appeal. The learned A.O. and Hon'ble CIT(Appeals) have erred in law and on facts in rejecting the claim of assessee that when Exemption u/s 11 and 12, is not granted to assessee by applying Proviso to section 2(15) and section 13(8), the amounts paid by BCCI being non contractual payments i.e. voluntary payment, these receipts are not income as defined in section 2(24) of Income Tax Act, 1961. 4. The learned A.O. has erred in law and on facts in not allowing the capital expenditure as an expenditure towards objects of trust which is supported by various decisions of Honourable High Courts and Hon. CIT(A) has erred in law and on facts in not accepting the said claim of the assessee. 116. We find that identical issues came up for our adjudication for the assessment year 2009-10 and we have allowed the plea of the assessee in the terms indicated earlier in this order while dealing with the assessment year 2009-10. We see no reasons to take any other view of the matter for this assessment year. Respectfully following the stand tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder and computing income in terms of the Section 11. The AO shall deal with the same by way of a speaking order 126. Ground no. 7 is thus allowed for statistical purposes in terms indicated above. 127. In the result, ITA No. 408/Ahd/17 i.e. appeal of the assessee for the assessment year 2012-13 is partly allowed in the terms indicated above Conclusions- Gujarat Cricket Association 128. In the result, ITA No. 408/Ahd/17, i.e. appeal of Gujarat Cricket Association for the assessment year 2012-13 is partly allowed in the terms indicated above. To sum up, all the four appeals filed by Gujarat Cricket Association are partly allowed in the terms indicated in the orders above. 129. We will now take up the appeals filed by Baroda Cricket Association. ITA No: 336 /Ahd/2015 130. This appeal challenges correctness of the order dated 7th November, 2014 passed by the CIT(A) in the matter of assessment under section 143(3) r.w.s. 147 of the Income Tax Act, 1961, for the assessment year 2009-10. 131. Ground nos. 1 to 3 challenge reassessment proceedings. However, learned counsel for the assessee submits that he does not wish to press these grounds of appeal. Accordingly, these three gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on that day section 13(8) was not even in the Statue Book. 4. The C.I.T. (Appeals) erred in not allowing exemption u/s 11(l)(a) of the Income Tax Act, 1961 based on provision of section 2(15) of the Income Tax Act, 1961. 5. The C.I.T. (Appeals) erred in taxing the income from the cricketing activities as business income u/s 28 without establishing the said activities as in nature of business trade or commerce. 7. The C.I.T. (Appeals) erred in not appreciating that impugned Assessment order was passed based on the Assessment Order for A.Y.2010-11 of The Board of Control For Cricket in India ("BCCI" for short) that too without providing copy of said order. 142. In view of our findings on the core issue in these appeals before us, as set out earlier in this order at pages 2 to 55 and in view of our decision above in the case of Gujarat Cricket Association on the issue, the assessee must succeed on these points. Learned representatives fairly agree that whatever we decide in the case of Gujarat Cricket Association, the same will equally apply in this case as well. We, therefore, uphold the plea of the assessee and allow these grounds of appeal to that extent in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 11(1)(d), what cannot be included as total income of the assessee is "income by way of voluntary contributions made with a specific direction that they shall form part of the corpus of the trust or the institution". The Assessing Officer was of the view that what has been paid to the assessee is a share out of earnings by the BCCI, out of proceeds of sale of TV rights, and is, as such, taxable as income of the assessee. It was observed that it cannot be said to be voluntary contribution by the BCCI. The Assessing Officer also shows that as accepted by the auditor of the company the amount is relatable to the TV rights and it cannot, therefore, be treated as voluntary contribution in the nature of corpus donations. He also noted that as registration of the assessee, under section 12AA, stands cancelled, the assessee is anyway not eligible for the benefit of Section 11(1)(d). On the basis of this line of reasoning, the Assessing Officer treated the said amount of ₹ 1,58,00,000 as income of the assessee. Aggrieved, assessee carried the matter in appeal before the CIT(A) but without any success. It was pointed out to the CIT(A) that the BCCI has passed a specific resolution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry and it has to be with specific direction that it will form corpus of the trust'. These conditions are clearly satisfied. Any payment which the assessee is not under an obligation to make, whatever be the mode of its computation, is a voluntary payment, and, any payment which is with a specific direction that it for corpus fund is a corpus donation. In our considered view, even without the two specific confirmations filed by the assessee, in the light of the BCCI resolution under which the payment is made and in the light of the payment not being under any legal obligation, the conditions under section 11(1)(d) are satisfied. We, therefore, uphold the plea of the assessee. The Assessing Officer is accordingly directed to delete this addition of ₹ 1,58,00,000. 146. We see no reasons to take any other view of the matter than the view so taken in the case of Gujarat Cricket Association. Respectfully following the same, we uphold the plea of the assessee and direct the Assessing Officer to treat the TV subsidy of ₹ 4,00,00,000 received from the BCCI as a corpus donation. The assessee gets the relief accordingly. 147. Ground no. 2 is allowed in the terms indicated above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. 152. Ground no. 3 is thus allowed for statistical purposes in the terms indicated above. 153. In ground no. 6, the assessee has raised the following grievance: 6. The C.I.T. (Appeals) erred in not appreciating the fact that hosting of One Day International match ("ODI" for short) is one off adventure to raise funds to carry out objects of the Trust. The income from said ODI cannot take colour of commercial activities or income. 154. We find that though there are findings to the above effect in the order of the Assessing Officer, the CIT(A) has dealt with the same in a very causal manner and without specific and categorical discussions on the same. We, therefore, deem it fit and proper to remit the matter to the file of the CIT(A) on this issue. We order so. As we do so, and for the detailed reasons set out earlier while dealing with Gujarat Cricket Associations case, we make it clear that it is only in the event of this event being organized by the appellant cricket association on its own, rather than under arrangements and planning by the BCCI, that this could be put against the assessee as an adventure in the nature of trade, commerce or business. 155. Ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t whereas section 13(8) clearly speaks about denying exemption to such income which is covered by proviso to section 2(15) of the Act and not entire income. 4. The ld. CIT(A) erred in not appreciating that the ld. AO has made high pitched assessment by taking base from the Assessment Order for A.Y. 2010-11 passed in the case of the Board of Control For Cricket in India ("BCCI" for short) that too without providing copy of said order to appellant. 7. The ld. CIT(A) erred in upholding view of ld. AO of not allowing exemption u/s.11(1)(a) of the Income Tax Act, 1961 on provision of section 2(15) of the Income Tax Act, 1961. 8. The ld. CIT(A) erred in upholding view of ld. AO of taxing the income of appellant from the cricketing activities as business income u/s.28 without establishing the said activities as in nature of business trade or commerce. 9. The ld. CIT(A) erred in upholding view of ld. AO of taxing interest income earned from corpus funds/surplus funds as non-charitable income. 165. In view of our findings on the core issue in these appeals before us, as set out earlier in this order at pages 2 to 55 and in view of our decision above in the case of Gujarat Cric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... what has been received by the assessee is a corpus donation and the assessee did not have any right to get the said money from the BCCI, under a contract or otherwise. It was also explained that similar amounts received in the earlier years have been treated all along as corpus donations, and, therefore, the corpus donation received by the assessee, though termed as TV Rights, is not taxable. The Assessing Officer noted this contention as also the fact that under section 11(1)(d), what cannot be included as total income of the assessee is "income by way of voluntary contributions made with a specific direction that they shall form part of the corpus of the trust or the institution". The Assessing Officer was of the view that what has been paid to the assessee is a share out of earnings by the BCCI, out of proceeds of sale of TV rights, and is, as such, taxable as income of the assessee. It was observed that it cannot be said to be voluntary contribution by the BCCI. The Assessing Officer also shows that as accepted by the auditor of the company the amount is relatable to the TV rights and it cannot, therefore, be treated as voluntary contribution in the nature of corpus donations. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trust or the institution", we are of the considered view that any payments made by the BCCI, without a legal obligation and with a specific direction that it shall be for corpus fund- as admittedly the present receipt is, is required to be treated as corpus donation not includible in total income. We are unable to find any legal support for learned CIT(A)'s stand that each donation must be accompanied by a separate written document. The contribution has to be voluntary and it has to be with specific direction that it will form corpus of the trust'. These conditions are clearly satisfied. Any payment which the assessee is not under an obligation to make, whatever be the mode of its computation, is a voluntary payment, and, any payment which is with a specific direction that it for corpus fund is a corpus donation. In our considered view, even without the two specific confirmations filed by the assessee, in the light of the BCCI resolution under which the payment is made and in the light of the payment not being under any legal obligation, the conditions under section 11(1)(d) are satisfied. We, therefore, uphold the plea of the assessee. The Assessing Officer is accordingly directed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the subsidy, which is clearly relatable to the capital assets generated, we are unable to hold this receipt in the revenue field. We, therefore, uphold the plea of the assessee on this point as well and delete the addition of ₹ 2,13,34,033. 175. We see no reasons to take a different view, in principle, in this case. However, as relevant facts ned to be examined, the matter is remitted to the file of the Assessing Officer for fresh adjudication, in the light of our above observations. We order accordingly. 176. Ground no. 6 is thus allowed for statistical purposes in the terms indicated above. 177. In ground no. 10, the assessee has raised the following grievance: The ld. CIT(A) erred in not appreciating the fact that hosting of One Day International match ("ODI" for short) is one of adventure to raise funds to carry out objects of the Trust. The income from said ODI cannot take colour of commercial activities or income. 178. We find that though there are findings to the above effect in the order of the Assessing Officer, the CIT(A) has dealt with the same in a very causal manner and without specific and categorical discussions on the same. We, therefore, deem it fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he action of AO of applying the provisions of section 13(8) of the Act to the appellant. 3. The ld. CIT(A) has erred both in law and on the facts of the case in confirming the action of AO of denying the exemption claimed by the appellant u/s. 11 and 12 of the Act. 187. In view of our findings on the core issue in these appeals before us, as set out earlier in this order at pages 2 to 55 and in view of our decision above in the case of Gujarat Cricket Association and Baroda Cricket Association on the issue, the assessee must succeed on these points. Learned representatives fairly agree that whatever we decide in the case of Gujarat Cricket Association and Baroda Cricket Association, the same will equally apply in this case as well. We, therefore, uphold the plea of the assessee and allow these grounds of appeal to that extent. 188. Ground nos. 1, 2 and 3 are thus allowed in the terms indicated above. 189. In ground no. 4, the assessee has raised the following grievance 4. The ld. CIT(A) has erred both in law and on the facts of the case in confirming the action of AO of not allowing exemption of ₹ 4,57,95,448/- claimed u/s.11(1)(d) of the Act. 190. There is no disput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. The ld. CIT(A) has erred both in law and on the facts of the case in confirming the action of AO of not allowing exemption of ₹ 23,44,45,066/- claimed u/s.11(2) of the Act. 6. The ld. CIT(A) has erred both in law and on the facts of the case in confirming the action of AO of not allowing exemption of ₹ 5,37,04,677/- claimed u/s. 11(1)(a) of the Act. 195. The above relief are only consequential in nature inasmuch these exemptions were denied on account of assessee being held to be not involved in a charitable activity under section 2(15) of the Act. Now the issue regarding charitable status of the assessee, and admissibility of consequent exemption under section 11, is decided above in favour of the assessee, the consequences will follow. We, therefore, remit the matter to the file of the Assessing Officer for granting consequential relief in accordance with the scheme of the law. 196. Ground nos. 5 and 6 are thus allowed for statistical purposes in the above terms. 197. No other grievance of the assessee requires any specific adjudication by us. 198. In the result, ITA No. 2839/Ahd/17, i.e. assessee's appeal for the assessment year 2012-13 is partly allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 51. On a perusal of the BCCI Infrastructure Subsidy rules, we find that what is given to the assessee as infrastructure subsidy is reimbursement of 50% of costs in respect of certain expenditure on infrastructure which is inherently in the capital field. The mere fact that it is not a reimbursement to an outside party, such as a district cricket association, does not really matter. As long as the subsidy is relatable to a capital asset created by the assessee on his own or by an eligible district cricket association, as the present subsidy undisputedly is, it is outside the ambit of revenue receipt and taxable income. The very foundation of the stand of the Assessing Officer is thus devoid of legally sustainable merits. As such, there can hardly be an occasion, in principle, to hold such a subsidy as a revenue receipt or taxable income. There is not even a whisper of a discussion by the Assessing Officer to the effect that infrastructure subsidy is revenue in nature. As a matter of fact, the claim is made for the subsidy only after the expenditure having been incurred. The authorities below have simply brushed aside the case and the submissions of the assessee and proceeded to hol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case in confirming the action of AO of holding that the appellant is not carrying on charitable activities within the definition of section 2(15) of the Act. 2. The ld. CIT(A) has erred both in law and on the facts of the case in confirming the action of AO of applying the provisions of section 13(8) of the Act to the appellant. 3. The ld. CIT(A) has erred both in law and on the facts of the case in confirming the action of AO of denying the exemption claimed by the appellant u/s. 11 and 12 of the Act. 215. In view of our findings on the core issue in these appeals before us, as set out earlier in this order at pages 2 to 55 and in view of our decision above in the case of Gujarat Cricket Association and Baroda Cricket Association on the issue, the assessee must succeed on these points. Learned representatives fairly agree that whatever we decide in the case of Gujarat Cricket Association and Baroda Cricket Association, the same will equally apply in this case as well. We, therefore, uphold the plea of the assessee and allow these grounds of appeal to that extent. 216. Ground nos. 1, 2 and 3 are thus allowed in the terms indicated above. 217. In ground no. 4, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r for fresh adjudication, in the light of our above observations. We order accordingly. 221. Ground no. 4 is thus allowed for statistical purposes in the terms indicated above. 222. In ground no. 5 & 6, the assessee has raised the following grievances: 5. The ld. CIT(A) has erred both in law and on the facts of the case in confirming the action of AO of not allowing exemption of ₹ 37,85,00,000 claimed u/s.11(2) of the Act. 6. The ld. CIT(A) has erred both in law and on the facts of the case in confirming the action of AO of not allowing exemption of ₹ 8,14,37,615 claimed u/s. 11(1)(a) of the Act. 223. The above relief are only consequential in nature inasmuch these exemptions were denied on account of assessee being held to be not involved in a charitable activity under section 2(15) of the Act. Now that the issue regarding charitable status of the assessee, and admissibility of consequent exemption under section 11, is decided above in favour of the assessee, the consequences will follow. We, therefore, remit the matter to the file of the Assessing Officer for granting consequential relief in accordance with the law. 224. Ground nos. 5 and 6 are thus allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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