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TMI Blog2019 (5) TMI 1134X X X X Extracts X X X X X X X X Extracts X X X X ..... of general public then the purpose would be charitable in nature. The assessee is not hit by the proviso to section 2(15) of the Act since it does not conduct any service or activities which are in the nature of trade, commerce or business. All the facts being examined vis- -vis taking into consideration of judicial pronouncements placed before us and examining object of the assessee s society provides that it is for charitable purpose for advancement of any other object of general public utility. As in the case of Ahmedabad Rana Caste Association Vs. Commissioner of Income Tax [ 1971 (9) TMI 8 - SUPREME COURT] wherein it has been held that the object of the trust may be charitable in nature and an object beneficial to a section of public is an object of general public utility. The section of public must be definite and identifiable and it is not necessary that the object should benefit the whole mankind. In the case of the assessee, since it is for promotion of Cricket, it may not be benefiting the entire mankind but those being benefited are definitely identifiable and they are sections of public. The work of the assessee society is to promote Cricket so as to bring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to encourage young and talented sportsmen and also to provide facility for Cricket amount the sportsmen of Chhattisgarh. The assessee is basically organizing coaching for Cricket players, conducting matches at District and State level through various district associations, organizing camp for the players to develop their skill for national and international tournaments. Applicant does not charge any fee from any players or any team for conducting matches or for organizing coaching/ camps. In fact it funds all these activities mainly out of grant received from BCCI and BCCI is parent body with regard to Cricket. The Ld. CIT(Exemption) in Para 7 of his order has merely pointed out that the assessee is conducting Indian Premier League (IPL) which is commercial in nature and the assessee gets a share in IPL from BCCI which is more than ₹ 25 Lakhs and registration granted to BCCI itself has been withdrawn. The Ld. AR of the assessee further submitted that the basic responsibility of conducting IPL matches is with franchisee teams. In previous years, 2 matches were organized at Raipur by GMR (franchisee owner of Delhi Dare Devils). It is exclusive right of Franchisee to select the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hisee owner of the respective IPL with which the assessee trust is not connected. 6. Per contra, the Ld. DR has placed reliance on the order of the Ld. CIT(Exemptions). 7. We have perused the case records and heard the rival contentions. We have also analyzed the facts and circumstances in this case. The assessee society has made an application before the Ld. CIT(Exemption) u/s.12AA of the Act for granting registration. It is settled view as held by the various Co-ordinate Bench of the Tribunal as well as Hon ble High Court that at the time of granting registration, the matter to be looked into are the objects of the applicant and whether past activities are concerned with such objects. If these are according to the provisions of law, then registration can be granted. However, if at the assessment stage, it is noticed that funds are not utilized for charitable purposes then the Assessing Officer may reject the exemption u/s.11 and 12 of the Act in respect to the concerned assessee. At the time of granting registration u/s.12AA of the Act, if the objects are charitable in nature then registration u/s.12AA has to be granted to such assessee. That on perusal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g other than promotion of cricket. When the scale of operations are larger, even the surplus or deficit could be large, but then the scale of operations may be a scale on which commercial activities could be carried out but that fact cannot convert an object of general public utility into a commercial activity. We have carefully analysed the objects of the assessee, and we do not find any objects, other than object of cricket, being pursued by these cricket associations. The objects of these cricket associations clearly demonstrate that these cricket associations exist and operate purely for the purpose of promoting cricket. Therefore, in our considered view the proviso to Section 2(15) cannot be invoked in the case of the assessee. 9. We find that in the case of DCIT Vs. Tamil Nadu Cricket Association (supra.) before the Co-ordinate Bench of the Tribunal, Chennai, the facts are that the assessee society was affiliated to Board of Control for Cricket in India and assessee derives income from subscription, rent for hiring cricket ground, sponsorship, fee for providing service to IPL, income from advertisement, subsidy/subvention from BCCI sale of tickets for conducting matc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State under BCCI supervision for promoting Cricket. We have also examined that the objects of the other State s Associations are similar to that of the assessee and when those Associations are enjoying the benefit of 12A and exemption u/s.80G of the Act then the assessee on the similar parameters and objects is entitled for registration u/s.12AA of the Act and exemption u/s.80G of the Act. Moreover, the facts demonstrate that this is not a Private Trust for the benefit of a single family but a society in which any person of general public of any caste, community or creed can become the member of the assessee society without any restriction. The assessee society runs through its members. The society performs all the function only through its members. The members of the society are fully dedicated to achieve the main object of the society. All the objects of the society are for the promotion of Cricket. Society has been formed with the like-minded members whose aim is to promote Cricket sports in India. The object nowhere speaks or intends to provide any financial assistance to its members. 12. We have already examined that the assessee is not hit by the proviso to section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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