DDIT(Exemptions), Hyd, Hyderabad v. Hyderabad Cricket Association, Hyd, Hyderabad

ITA 780/HYD/2015 | 2010-2011
Pronouncement Date: 08-03-2021 | Result: Dismissed

Appeal Details

RSA Number 78022514 RSA 2015
Assessee PAN AAATT6229Q
Bench Hyderabad
Appeal Number ITA 780/HYD/2015
Duration Of Justice 5 year(s) 9 month(s) 3 day(s)
Appellant DDIT(Exemptions), Hyd, Hyderabad
Respondent Hyderabad Cricket Association, Hyd, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 08-03-2021
Appeal Filed By Department
Order Result Dismissed
Bench Allotted DB-A
Tribunal Order Date 08-03-2021
Date Of Final Hearing 03-03-2021
Next Hearing Date 03-03-2021
Last Hearing Date 28-08-2018
First Hearing Date 24-09-2020
Assessment Year 2010-2011
Appeal Filed On 04-06-2015
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI A.MOHAN ALANKAMONY ACCOUNTANT MEMBER AND SHRI S.S.GODARA JUDICIAL MEMBER ITA NO. A.Y. APPELLANT RESPONDENT 511/HYD/15 2008-09 HYDERABAD CRICKET ASSOCIATION HYDERABAD [PAN: AAATT6229Q] JOINT DIRECTOR OF INCOME TAX (EXEMPTIONS) HYDERABAD 512/HYD/15 2010-11 DEPUTY DIRECTOR OF INCOME TAX (EXEMPTIONS)-II HYDERABAD 513/HYD/15 2011-12 JOINT DIRECTOR OF INCOME TAX (EXEMPTIONS) HYDERABAD 533/HYD/15 2008 - 09 ASST. COMMISSIONER OF INCOME TAX (EXEMPTIONS) I/C CIRCLE HYDERABAD HYDERABAD CRICKET ASSOCIATION HYDERABAD [PAN: AAATT6229Q] 534/HYD/15 2011-12 780/HYD/15 2010-11 DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTIONS) HYDERABAD FOR ASSESSEE : SHRI C.SURESH AR FOR REVENUE : SMT. NIVEDITA BISWAS & SHRI SUNIL KUMAR PANDEY DRS DATE OF HEARING : 03-03-2021 DATE OF PRONOUNCEMENT : 08-03-2021 O R D E R PER S.S.GODARA J.M. : THE ASSESSEE AND THE REVENUE HAVE FILED THEIR INSTANT S IX CROSS-APPEALS FOR AYS.2008-09 2010-11 AND 2011-12 AGAINST HYDERABAD CRICKET ASSOCIATION (CROSS APPEALS) :- 2 -: THE CIT(A)-9 HYDERABADS ORDER(S) DATED 13-02-2015 05-03- 2015 PASSED IN CASE NOS.83 0001 & 89/CIT(EX)/CIT( A)-9/14- 15 (ASSESSMENT YEAR-WISE) INVOLVING PROCEEDINGS U/S .143(3) R.WS.147 OF THE INCOME TAX ACT 1961 [IN SHORT THE AC T]; RESPECTIVELY. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. IT TRANSPIRES DURING THE COURSE OF HEARING THAT BOTH TH ESE PARTIES HAVE RAISED IDENTICAL SUBSTANTIVE GROUNDS IN EA CH OF THEIR THREE CROSS APPEALS. WE ADVERT TO THE ASSESSEES C ASES ITA NOS.511 TO 513/HYD/2015 WHEREIN IT HAS CANVASSED THE FOLLOWING SUBSTANTIVE GROUNDS IN FIRST OF THE SAID APPE ALS: 1.THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) [C.I.T(A)] HYDERABAD IS ERRONEOUS IN LAW AND ON TH E FACTS OF THE CASE. 2.THE LEARNED C.I.T(A) ERRED IN HOLDING THAT THE AS SESSEE'S CLAIM OF HAVING INCURRED EXPENDITURE FOR CHARITABLE PURPOSES CANNOT BE ACCEPTED TO THE EXTENT OF RS.2 17 71 842/- RS.79 7 08/- RS.14 36 270/- RS12 12 898/- AND RS.96 237/- ON TH E GROUND THAT THE ASSESSEE DID NOT PRODUCE EVIDENCE FOR THE SAID AMOUNT. 3.THE LEARNED C.I.T(A) FAILED TO APPRECIATE THAT TH E ASSESSING OFFICER [A.O] NOT ONLY EXAMINED BOOKS OF ACCOUNT BUT ALSO V OUCHERS PRODUCED BY THE ASSESSEE AND RECORDED THAT OUT OF CASH PAYME NTS OF RS.2 01 49 199/- FOR WHICH EVIDENCE WAS SOUGHT THE ASSESSEE PRODUCED DETAILS AND VOUCHERS FOR PAYMENTS AGGREGAT ING TO RS.1 88 35 721/- AND IN THE FACE OF SUCH LEVEL OF C OMPLIANCE IT WAS NOT RATIONAL AND REASONABLE TO HOLD THAT THE ASSESS EE'S CASE WAS ONE OF ABSENCE OF EVIDENCE. 4.THE LEARNED C.I.T(A) OUGHT TO HAVE APPRECIATED TH AT THE A.O EXERCISED JUDICIOUS DISCRETION AND MADE DISALLOWANC E AT 10% BASED ON THE STATE OF ACCOUNTS AND AFTER TAKING INTO ALL THE FACTS AND CIRCUMSTANCES OF THE CASE AND SAME OUGHT NOT TO HAV E BEEN UPROOTED IN A SUMMARY MANNER. 5.THE LEARNED C.I.T(A) OUGHT TO HAVE APPRECIATED TH AT THE ASSESSEE GOT ITS ACCOUNT AUDITED U/S.12A(B) OF THE ACT AND F URNISHED A REPORT IN FORM NO.10B QUANTIFYING THE AMOUNT APPLIED FOR CHAR ITABLE PURPOSES AND THAT THERE WERE NO QUALIFICATIONS IN THE SAID R EPORT ABOUT ANY HYDERABAD CRICKET ASSOCIATION (CROSS APPEALS) :- 3 -: UNVOUCHED EXPENDITURE WARRANTING A SWEEPING FINDING THAT AN AMOUNT OF RS.88 28 563 CANNOT BE ACCEPTED AS SPENT FOR CHARITABLE PURPOSES. 6.WITHOUT PREJUDICE TO THE PRECEDING GROUNDS OF APP EAL THE LEARNED C.I.T(A) IS NOT JUSTIFIED IN ENHANCING THE DISALLOW ANCE MENTIONED IN GROUND NO 2 ABOVE WITHOUT AFFORDING AN OPPORTUNITY TO THE ASSESSEE. 7.THE LEARNED C.I.T(A) ERRED IN HOLDING THAT THE DO NATION OF RS.5 00 000/- MADE BY THE ASSESSEE TO THE HYDERABAD HOCKEY ASSOCIATION ASSESSEE IS TO BE TREATED AS NOT HAVING BEEN APPLIED IN ACCORDANCE WITH THE OBJECTS OF THE ASSESSEE. 8. THE LEARNED C.I.T(A) OUGHT TO HAVE APPRECIATED T HAT THE DONATION MADE TO HYDERABAD HOCKEY ASSOCIATION WAS AN ACT OF RECIPROCITY IN RELATION TO A PREMIER SISTER ASSOCIATION. 9. THE LEARNED C.I.T(A) ERRED IN NOT ADJUDICATING U PON AND DIRECTING DELETION OF DISALLOWANCE OF RS.1 21 20 367/- MADE U /S.40(A)(IA). 3. BOTH THE LEARNED REPRESENTATIVE ARE VERY MUCH AD IDEM DURING THE COURSE OF HEARING THAT THE FACTUAL POSITION I S NO DIFFERENT IN THE LATTER TWO ASSESSMENT YEAR I.E. AYS. 2010-11 AND 2011-12 AS WELL. WE NOTICE IN THIS FACTUAL BACKDR OP AND IN VIEW OF THE AGREEMENT BETWEEN THE PARTIES QUA THE CLINCHING FACT THAT THE VERY ISSUE(S) HAVE BEEN ARISING BETWEEN TH E PARTIES IN EARLIER ASSESSMENT YEARS DUE TO FAILURE ON ASSESSEES PART TO PRODUCE THE RELEVANT BILLS AND VOUCHERS OF THE EXPENDITURE CLAIM(S) AND RECIPIENTS CONFIRMATIONS. WE ARE NEXT TAKEN TO THE TRIBUNALS CO-ORDINATE BENCHS ORDER I N AYS.2006-07 AND 2007-08 IN ASSESSEES APPEALS ITA N OS. 509 AND 510/HYD/2015 DT.25-10-2017 RESTORING THE SAID IDE NTICAL ISSUES BACK TO THE ASSESSING OFFICER FOR HIS AFRESH F ACTUAL VERIFICATION. LEARNED AUTHORISED REPRESENTATIVE ALSO SOUGHT TO HIGHLIGHT THE FACT THAT THE CONSEQUENTIAL ASSESSMENT(S) F RAMED IN FURTHERANCE TO THE TRIBUNALS DIRECTIONS HAVE ACCE PTED THAT ASSESSED EXPENDITURE CLAIM(S) AS INCURRED ONLY AND EXCLUSIVELY HYDERABAD CRICKET ASSOCIATION (CROSS APPEALS) :- 4 -: DURING THE COURSE OF ITS CORE ACTIVITIES/PURPOSES. WE THEREFORE DEEM IT APPROPRIATE IN THIS FACTUAL BACKDROP THAT LAR GER INTEREST OF JUSTICE WOULD BE SERVED IF ALL THESE ISSUE S INVOLVING VARYING SUMS OF MONEY IN THE THREE ASSESSMENT YEARS AL SO FOLLOW THE SUIT. WE ORDER ACCORDINGLY. IT IS MADE CL EAR THAT THE ASSESSEE OR ITS AUTHORISED REPRESENTATIVE SHALL APPEAR BEFORE THE ASSESSING OFFICER ON OR BEFORE 31-08-2021 WITH A LL THE NECESSARY DETAILED EVIDENCE(S) TO BE FOLLOWED BY CONS EQUENTIAL FACTUAL VERIFICATION WITHIN THREE EFFECTIVE OPPORTUNITIES AT ITS OWN RISK AND RESPONSIBILITY. THESE ASSESSEES APPEA LS ITA NOS. 511 512 & 513/HYD/2015 ARE ACCEPTED FOR STATISTICAL PURPOSES IN ABOVE TERMS. 4. NEXT COME THE REVENUES THREE APPEALS ITA NOS.533 534 & 780/HYD/2015 RAISING THE FOLLOWING IDENTICAL ISSUE (S). 1.THE ORDER OF THE LD. CIT(A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2.THE LD. CIT(A) ERRED IN HOLDING THAT THE REGISTRA TION OF THE ASSESSEE STANDS RESTORED AS ON DATE AND THAT EXEMPTION U/S. 11 CANNOT BE DENIED TO THE ASSESSEE FOR REASONS OF ABSENCE OF RE GISTRATION. 3.THE LD.CIT(A) OUGHT TO HAVE APPRECIATED THAT WHE N THE HON'BLE ITAT IN ITS ORDER IN ITA NO.1228/HYD/2012 DT.26.03. 2014 HAVE SET ASIDE THE EARLIER DATED 31.05.2012 OF THE DIT(E) PA SSED U/S.12AA(3) CANCELLINQ REGISTRATION IN THE CASE OF THE ASSESSEE WITH A DIRECTION TO HIM TO PASS A FRESH ORDER GIVING AN OPPORTUNITY TO THE ASSESSEE UNDER THAT CIRCUMSTANCES IT CANNOT BE SAID THAT RE GISTRATION OF THE ASSESSEE STANDS RESTORED AS ON DATE. 4.THE LD.CIT(A) OUGHT TO HAVE APPRECIATED THAT WHEN FOLLOWING THE SAID ORDER OF THE HON'BLE ITAT IN ITA NO.1228/HYD/2 012 DT.26.03.2014 THE MATTER OF CANCELLATION OF REGIST RATION IN THE CASE OF THE ASSESSEE WAS PENDING BEFORE THE CIT(E) (FORMERL Y DIT(E)) THE LD.CIT(A) WAS NOT CORRECT IN HOLDING THAT THE REGIS TRATION OF THE ASSESSEE STANDS RESTORED AS ON DATE. 5.THE LD.CIT(A) ERRED IN HOLDING THAT THE ACTIVITY AND SOURCES OF INCOME IN THE CASE OF THE ASSESSEE ARE SIMILAR TO T HAT OF THE TAMIL HYDERABAD CRICKET ASSOCIATION (CROSS APPEALS) :- 5 -: NADU CRICKET ASSOCIATION AND THAT THE ASSESSEE WAS NOT ENGAGED IN ACTIVITIES IN THE NATURE OF TRADE COMMERCE OR BUSI NESS AND THEREFORE IS ELIGIBLE FOR EXEMPTION U/S.11. 6.THE LD.CIT(A) OUGHT TO HAVE APPRECIATED THAT THE ASSESSEE HAS CARRIED ON SEVERAL ACTIVITIES WHICH ARE NOT IN ACCO RDANCE WITH ITS OBJECTS AS DISCUSSED IN THE ORDER DATED 31.05.2012 OF THE DIT(E) WHICH ENTAILED CANCELLATION OF REGISTRATION U/S 12A A(3) IN THE CASE OF THE ASSESSEE AND WHILE SETTING ASIDE THE SAID ORDE R OF THE DIT(E) DIRECTING HIM TO PASS FRESH ORDER AFTER GIVING AN O PPORTUNITY TO THE ASSESSEE THE HON'BLE ITAT HAS NOT GIVEN ANY DECISI ON ON THE MERIT OF SUCH FINDING GIVEN BY THE DIT(E). 7.AT THIS STAGE IT MAY BE FURTHER MENTIONED THAT C ONSEQUENT TO THE SAID ORDER OF THE HON'BLE ITAT IN ITA NO.1228/HYD/2 012 THE CIT(E) IN THE MEAN TIME VIDE HIS ORDER DATED 13.03.2015 PASSED U/S.12AA(3) AFRESH HAS CANCELLED THE REGISTRATION IN THE CASE OF THE ASSESSEE W.E.F. 01.10.2004 AND HENCE THE ASSESSEE IS NOT ELIGIBLE FOR EXEMPTION U/S.11 OF THE ACT FOR THE ASST. YEAR 2008 -09. 8. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME O F HEARING OF THE APPEAL. 5. LD.CIT-DR VEHEMENTLY CONTENDED DURING THE COURSE OF HEARING THAT THE CIT(A) HAS ERRED IN LAW AND ON FACTS I N TREATING THIS ASSESSEE AS HAVING A VALID SECTION 12AA REGISTRATION DESPITE THE FACT THAT THE TRIBUNALS ORDER DT. 26-03- 2014 (SUPRA) HAD ONLY RESTORED THE ISSUE BACK TO THE CIT(EXEMPTIONS) THAT THE QUESTION AS TO WHETHER THE ASSE SSEE HAS A VALID 12AA REGISTRATION OR NOT ALREADY STANDS ADJUDICATED IN ITS APPEAL ITA NO.649/HYD/2015 WHER EIN THIS TRIBUNALS CO-ORDINATE BENCHS ORDER DT.13-10-2016 HAS ALLOWED ITS GROUNDS AGAINST THE CIT(EXEMPTIONS)S ORD ER DT.31- 05-2012 (FIRST ROUND) AND DT.13-03-2015 (SECOND ROUND ); RESPECTIVELY. ONCE THAT IS THE CASE THE REVENUES A RGUMENTS THAT THE ASSESSEE DOES NOT HAVE SECTION 12AA REGISTRATION IS MERELY A TECHNICAL ASPECT NOT HAVING ANY MATERIAL BEARI NG ON THE INSTANT THREE APPEALS. THE SAME ARE REJECTED THEREF ORE. HYDERABAD CRICKET ASSOCIATION (CROSS APPEALS) :- 6 -: NO OTHER ARGUMENT OR GROUND HAS BEEN PRESSED BEFORE US AT EITHER PARTYS BEHEST. 6. TO SUM-UP ASSESSEES APPEALS ITA NOS.511 512 & 513/HYD/2015 ARE TREATED AS ALLOWED FOR STATISTICAL PURP OSES IN ABOVE TERMS AND THE REVENUES CROSS APPEALS ITA NO S.533 534 & 780/HYD/2015 ARE DISMISSED. A COPY OF THIS CO MMON ORDER BE PLACED IN THE RESPECTIVE CASE FILES. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH MARCH 2021 SD/- SD/- ( A. MOHAN ALANKAMONY ) ( S.S. GODAR A ) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD DATED: 08-03-2021 TNMM HYDERABAD CRICKET ASSOCIATION (CROSS APPEALS) :- 7 -: COPY TO : 1.HYDERABAD CRICKET ASSOCIATION RAJIV GANDHI INTERNATIONAL CRICKET STADIUM VISAKA CRICKET GROUN D PLOT NOS.1 TO 5 TARNAKA-UPPAL ROAD HYDERABAD. 2.THE JOINT DIRECTOR OF INCOME TAX (EXEMPTIONS) HYDERABAD. 3.THE DY.DIRECTOR OF INCOME TAX (EXEMPTIONS)-II HYDERABAD. 4. THE DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTION S) HYDERABAD. 5.THE ASST.COMMISSIONER OF INCOME TAX (EXEMPTIONS) HYDERABAD. 6.CIT(APPEALS)-9 HYDERABAD. 7.CIT-EXEMPTIONS HYDERABAD. 8.D.R. ITAT HYDERABAD. 9.GUARD FILE.