Income Tax Appellate Tribunal - Mumbai
M..I.G. Cricket Club, Mumbai vs Department Of Income Tax on 24 April, 2009
IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI BENCHES "B" : MUMBAI
BEFORE SHRI D. MANMOHAN, VICE PRESIDENT
AND
SHRI B.RAMAKOTAIAH, ACCOUNTANT MEMBER
ITA. No. 1802/Mum/2010 - Assessment year 2002-2003
ITA. No. 1803/Mum/2010 - Assessment year 2003-2004
ITA. No. 1804/Mum/2010 - Assessment year 2004-2005
ITA. No. 1805/Mum/2010 - Assessment year 2005-2006
ITA. No. 1806/Mum/2010 - Assessment year 2006-2007
Dy.DIT(E)-1(1) vs. M.I.G. Cricket Club
Mumbai. Mumbai - 51
PAN AAATM4779J
(Appellant) (Respondent)
For appellant : Shri Hari Govind Singh (DR)
For respondent : Shri Jayant Gokhale
ORDER
PER BENCH
1. These appeals were filed by the Revenue and they arise out of the identical Orders passed by the Assessing Officer as well as the CIT(A) concerning the issue of exemption under section 11 of the Income Tax Act, 1961.
2. The case of the assessee is that its income is exempt from levy of tax since association of persons was formed with the main object of promoting cooperation amongst the members as well as to develop sportsmanship, sportsman spirit and social duty sense and also to provide recreation facilities for people in general in addition to render several services like organising blood donation camps etc., Admittedly, assessee has been granted registration under section 12A of the Income Tax Act, 1961.
3. Standard reasons given by the Assessing Officer for rejecting the claim of the assessee were that ;
2(a) the club is not open to the general public
(b) non-members are admitted by charging coaching fees
(c) assessee has not carried out any activity which can be said to be of a charitable nature ; On the contrary, by extending facilities to non-members, association and its members are involved in an activity of a trading character which can be seen from the fact that the assessee is earning income by way of donations, subscription fees, entrance fees, coaching fees etc.,
4. It was thus concluded that the assessee is not an association created/established for charitable purpose, within the meaning of the provisions of section 2 (15) of the I.T. Act, and consequently it is not entitled to exemption under section 11 of the Act.
5. Learned CIT(A) on the other hand observed that the ITAT, Mumbai Bench, in assessee's own case for the assessment years 1998-99 to 2001-2002, analysed the facts of the case while holding that the assessee is entitled to exemption under section 11 of the Act.
6. Aggrieved, Revenue is in appeal before us. At the time of hearing, learned Counsel placed before us a copy of the Order of the ITAT, Mumbai Bench as well as the Hon'ble High Court of Judicature at Mumbai to submit that under identical facts and circumstances the issue was decided in favour of the assessee and therefore, for the sake of consistency assessee should be permitted to avail the benefit under section 11 of the Act.
"ITA. No. 3104 to 3107/Mum/2006 and 3274 to 3277/Mum/2006 dated 24th April, 2009 for the assessment years 1998-99 to 2001-02 (High Court, vide its Order dated 30th November, 2009, upheld the Order of the ITAT by holding that revenue could not find fault with the Order of the Tribunal.3
Since a reasonable and possible view was taken by the Bench, no substantial question of law arises)".
7. On the other hand learned DR strongly supported the Orders passed by the Assessing Officer.
8. We have carefully considered the rival submissions and perused the record. Admittedly, there is no difference in the factual matrix as compared to the assessment years 1998-99 to 2000-2001. In the aforecited decision the Tribunal observed that the assessee having been granted registration as a charitable institution under section 12A of the Act, it would not be open for an authority, inferior to the authority who has granted registration, to take a contrary view and to hold that it is not a charitable organisation. The Bench further observed that so long as assessee is registered under section 12A of the Act, the Assessing Officer is duty bound to examine the claim of the assessee for exemption under sections 11, 12 and 13 of the Act and it can be denied in a case where there is violation of conditions specified in sections 11 to 13 of the Act whereas, in the instant case, the Assessing Officer has not pointed out any violation and merely made general observations. The Bench further noticed that principles of mutuality does apply to the case of the assessee and as long as the receipts are not tainted with commerciality, income in the form of interest etc., cannot be considered as taxable. The Bench thus concluded that the assessee is entitled to exemption under section 11 of the Act. Since the view taken by the learned CIT(A), in all these years, is in consonance with the view taken by the ITAT in assessee's own case for the earlier years, we do not find any infirmity in the Orders passed by the learned CIT(A) and therefore, affirm the Order of the learned CIT(A).
4ITA. No. 1802 to 1806/Mum/2010 MIG Cricket Club
9. In the result, appeals filed by the Revenue are dismissed, as pronounced in the open Court.
Sd/- Sd/- (B.RAMAKOTAIAH) (D.MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT Mumbai, Date 03rd March, 2011 VBP/- Copy to
1. Dy. DIT (E)-1(1), Room No. 504, Piramal Chambers, 5th Floor, Parel, Mumbai - 12.
2. M.I.G. Cricket Club, M.I.G. Colony, Bandra (E), Mumbai - 51 PAN AAATM4779J
3. CIT(A)-I, Mumbai
4. DIT(E), Mumbai
5. DR "B" Bench
6. Guard File.
(True Copy) By Order
Asst. Registrar, ITAT, Mumbai Benches
MUMBAI.