The Institute Of Chartered Accountants ... vs The Director General Of Income Tax ... on 3 October, 2017
It is also brought to our notice that the RCA has also incurred
in various other expenses with a view to promote the game of Cricket
viz. on coaching camps of Rs. 20,40,360/-, state cricket activities of
Rs. 1,08,60,566/-, Ground expense of Rs. 33,97,435/- and
international tournament expenses of Rs. 2,09,16,911/-. These facts
go to demonstrate that the assessee has been predominantly engaged
into the activity of promoting cricket match. The counsel for the
assessee has placed reliance on the judgment of the Hon'ble Delhi
High Court rendered in the case of Institute of Chartered Accountant
vs Director General of Income Tax, wherein the Hon'ble High Court
held that even though fee are charged by the petitioner Institute for
providing coaching classes and holding interviews with respect of
campus placement, the said activity cannot be stated to be rendering
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of service in relation to any trade, commerce or business as such
activities are undertaken by the petitioner institute in furtherance of its
main object which has held earlier are not trade, commerce or
business. In the present case also the main activity of the assessee is
conducting of the cricket match which falls under the category of
general public utility. This fact is not disputed by the Revenue. All
these activities an ancillary to the main activity. Therefore, we are of
the considered view that the Assessing Officer was not justified in
declining the exemption.