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TMI Blog2020 (7) TMI 641X X X X Extracts X X X X X X X X Extracts X X X X ..... taxable in view of the amended objects of the assessee, hence, even if the claim of exemption is allowed to the assessee for the assessment years under consideration that will not serve any useful purpose as the assessee in the subsequent years will be liable to pay tax on such accreted income. Double taxation of income in the hands of BCCI and Assessee, as the member of AOP - Held that:- As decided in [ 2019 (9) TMI 681 - ITAT CHANDIGARH ] amount paid by the BCCI to the appellant which has already been taxed at the hands of BCCI, cannot be now taxed in the hands of the member of the AOP i.e. the appellant State Association as it will amount to double taxation of the same amount. if the claim of the BCCI for treating the payments made to the State Association as deductible expenditure is accepted by any higher appellate authority in its case for the year under consideration, it will be open to the assessing officer of the appellant to reopen the case of the appellant and to decide whether the said payments received from BCCI can be taxed as income of the appellant which will be subject to our observations given on other issues raised in this appeal - income received by the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xes by companies, receipt of IPL subvention from BCCI, income from club facilities, receipt from sponsors etc, are of commercial nature and hence the appellant is not eligible for exemption u/s 11 12 as it is hit by the first proviso to section 2(15) of the Income Tax Act, 1961. The denial of deduction u/s 11 12 of the Income Tax Act, 1961 on this account, merits to be set aside. ii) That the Ld. Commissioner of Income-tax (Appeals) has erred in facts and law in confirming the conclusion drawn by the Ld. AO that the rendering of services in respect of Indian Premier League cricket (IPL) by the appellant is a business activity and hence it not eligible for exemption u/s 11 12 as it is hit by the first proviso to section 2(15) of the Income Tax Act, 1961. The Ld. Commissioner of Income-tax (Appeals) as well as Ld. AO has failed to appreciate the arrangement of conducting Indian Premier League cricket (IPL) matches agreed between BCCI and Kings XI Punjab and the role of appellant therein. Therefore, the conclusions drawn are not sustainable. iii) That the Ld. Commissioner of Income-tax (Appeals) has erred in law and on the facts in not following the ratio laid down by the Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15) of the Income Tax Act, 1961. The Ld. Commissioner of Income-tax (Appeals) as well as Ld. AO has failed to appreciate the arrangement of conducting Indian Premier League cricket (IPL) matches agreed between BCCI and Kings XI Punjab and the role of appellant therein. Therefore, the conclusions drawn are not sustainable. iii) That the Ld. Commissioner of Income-tax (Appeals) has erred in law and on the facts in not following the ratio laid down by the Hon'ble IT AT, Bench A judgment in the case of M/s. Tamil Nadu Cricket Association V. DDIT (Exemption) Chennai ITA No. 1535,1536 1537/Mds/2014 dated 14/08/2015, on similar set of facts without giving any reason for the same. iv) That the Ld. Commissioner of Income-tax (Appeals) has erred in law by not following the judgment of Hon'ble Punjab Haryana High Court, in case of Tribune Trust V. Commissioner of Income Tax, Chandigarh [2016] 76 taxmann.com 363, in which the Hon'ble court has held that even after the amendment of section 2(15) w.e.f. 2009, to know whether the income of the trust or the institution is ancillary or incidental to the attainment of the objects or whether it is the predominant motive or activity of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices in respect of Indian Premier League cricket (IPL) by the appellant is a business activity and hence it not eligible for exemption u/s 11 12 as it is hit by the first proviso to section 2(15) of the Income Tax Act, 1961. The Ld. Commissioner of Income-tax (Appeals) as well as Ld. AO has failed to appreciate the arrangement of conducting Indian Premier League cricket (IPL) matches agreed between BCCI and Kings XI Punjab and the role of appellant therein. Therefore, the conclusions drawn are not sustainable. iii) That the Ld. Commissioner of Income-tax (Appeals) has erred in law and on the facts in not following the ratio laid down by the Hon'ble IT AT, Bench A judgment in the case of M/s. Tamil Nadu Cricket Association V. DDIT (Exemption) Chennai ITA No. 1535,1536 1537/Mds/2014 dated 14/08/2015, on similar set of facts without giving any reason for the same. iv) That the Ld. Commissioner of Income-tax (Appeals) has erred in law by not following the judgment of Hon'ble Punjab Haryana High Court, in case of Tribune Trust V. Commissioner of Income Tax, Chandigarh [2016] 76 taxmann.com 363, in which the Hon'ble court has held that even after the amendment of section 2(1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gement of conducting Indian Premier League cricket (IPL) matches agreed between BCCI and Kings XI Punjab and the role of appellant therein. Therefore, the conclusions drawn are not sustainable. iv) That the Ld. Commissioner of Income-tax (Appeals) has erred in law and on the facts in not following the ratio laid down by the Hon'ble IT AT, Bench A judgment in the case of M/s. Tamil Nadu Cricket Association V. DDIT (Exemption) Chennai ITA No. 1535,1536 1537/Mds/2014 dated 14/08/2015, on similar set of facts without giving any reason for the same. v) That the Ld. Commissioner of Income-tax (Appeals) has erred in law by not following the judgment of Hon'ble Punjab Haryana High Court, in case of Tribune Trust V. Commissioner of Income Tax, Chandigarh [2016] 76 taxmann.com 363, in which the Hon'ble court has held that even after the amendment of section 2(15) w.e.f. 2009, to know whether the income of the trust or the institution is ancillary or incidental to the attainment of the objects or whether it is the predominant motive or activity of the trust, the test laid down in the judgment of the Supreme Court in the case of Addl. CIT V. Surat Art Silk Cloth Manufacturers Assoc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cided against the assessee. The Ld. counsel for the appellant assessee has fairly admitted that the issue involved in these appeals, otherwise, has been settled by this Tribunal in the own case of the assessee for assessment year 2010-11(supra). However, he has submitted that the Hon ble Gujarat High Court in a bunch of appeals with the lead case titled as Director Of Income Tax (Exemption) vs Gujarat Cricket Association reported in 2019-TIOL-2457-HC-AHM-IT has decided almost identical issue involved therein in favour of the assessees therein, upholding the order of the Ahmedabad Bench of the Tribunal passed in group of cases with the lead case Gujarat Cricket Association vs Joint Commissioner of Income-tax (Exemptions) , Ahmedabad reported in [2019] 101 taxmann.com 453 (Ahmedabad - Trib.). The Ld. counsel, therefore, has submitted that the issue involved in theses appeals may be accordingly decided in favour of the assessee. 6. The Ld. DR, on the other hand, has submitted that the decision of the Hon ble Gujarat High Court (supra) cannot be applied in these appeals because of entirely distinguishable facts. Some of the distinguishable facts inter alia strongly stressed by the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of PCA, it has been held by the Tribunal that from the facts and evidences on the file, it is apparent that the assessee association not only being the member of the BCCI which is the AOP of the assessee along with other members, but also, is individually involved in a systematic and regular manner in commercial exploitation of the popularity of cricket matches and its infrastructure. That the BCCI in clear terms has pleaded that without the involvement of State Associations, the conduct of the IPL matches and huge revenue generation from the same is not possible. The assessee being party to the Tripartite Agreement is itself an evidence of the assessee being commercially involved in BCCI-IPL matches. That the Tribunal;, therefore has concluded that though, no doubt, the assessee is also actively contributing towards the promotion and popularity of the cricket but at the same time its activities are also concentrated for generation and augmentation of the revenue by exploiting the popularity of the game and towards monopolisation and having dominant control over the cricket to the exclusion of others. The commercial exploitation of the popularity of the game and the property/infra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r charitable purposes. However now with the amended objects, it may exploit the so created infrastructure for commercial purposes. The Tribunal, therefore, has observed that in its view, the introduction of the above object has brought clarity about the manner of operation and activities of the assessee. That, whereas, there is neither any reference nor any discussion about the amended objects, if any, in the case of Gujarat Cricket association(supra). 7. The Ld. counsel for the assessee at this stage has fairly admitted that the facts of the case of the assessee as discussed in order dated 12.9.2019 (supra) were clearly distinguishable and that the specific facts and evidences noted in the case of the assessee were not there either before the Tribunal or before the Hon ble Gujarat High Court in the case of Gujarat Cricket Association (supra). He, therefore, conceded that the decision arrived at by the Hon ble Gujarat High Court in the case of Gujarat Cricket Association cannot be applied as such in the case of the assessee. 8. At this stage, the attention of the Ld. counsel of the assessee has been invited to the provisions of section 115TD of the Act, sub section (1) clause (a) t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me amount. The Ld. Counsel, therefore, has submitted that the said findings may be affirmed in these appeals also. Since, the matter in appeals under consideration is squarely covered with the decision arrived at by this Tribunal in the own case of the assessee for AY 2010-11 vide order dated 12.09.2019, hence, the observations made therein and the findings arrived at by the Tribunal vide order dt 12.9.2019 will apply mutatis mutandis to these appeals of the assessee. The concluding part of the order of the Tribunal dated 12.9.2019, for the sake of ready reference is reproduced as under: 42. Under the circumstances, the appellant cannot be granted exemption under section 11 of the Act as its activities no more fall under the definition of charitable purposes as per the provisions of section 2(15) of the Act. In view of the discussion made above, the amount paid by the BCCI to the appellant which has already been taxed at the hands of BCCI, cannot be now taxed in the hands of the member of the AOP i.e. the appellant State Association as it will amount to double taxation of the same amount. However, if the claim of the BCCI for treating the payments made to the State Association as d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the income from the club house and other facilities is generated generally from the members only and the receipt from the non-members is an exception or the income is generated from members and non-members in normal course of business. Whether the catering services are limited to the members and their guests only or the same are also provided to non-members also on commercial basis. The Assessing officer after thoroughly examining the above facts will decide if the principle of mutuality applies to the club income including catering contract in accordance with law. This issue is accordingly restored to the file of the Assessing officer. 45. Before parting, we deem it appropriate to mention here that in some of the case laws cited by the Ld. Counsel for the assessee the issue regarding the charitable nature in the case of other state associations has been decided in favour of those assessees, however, after going through the said decisions, with due respect to the said decisions and most humbly we are of the view that those decisions are based on the facts presented before the respective Benches in those cases. What is to be applied from a decision having precedential value is the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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