Hyderabad Cricket Association Vs Joint Director of Income Tax (Exemptions) (ITAT Hyderabad)
The Hyderabad Cricket Association (HCA) and the Revenue filed six cross-appeals before the ITAT Hyderabad for AYs 2008-09, 2010-11, and 2011-12, challenging the orders passed by CIT(A)-9, Hyderabad, dated 13-02-2015 and 05-03-2015, in case numbers 83, 0001, and 89/CIT(Ex)/CIT(A)-9/14-15. The appeals concerned proceedings under sections 143(3) read with 147 of the Income Tax Act, 1961. Both parties raised identical substantive grounds across the three assessment years.
In the assessee’s appeals (ITA Nos. 511–513/Hyd/2015), the primary contention was that the CIT(A) erred in disallowing certain claimed expenditures for charitable purposes. Specifically, the assessee argued that disallowances of Rs.2,17,71,842, Rs.79,708, Rs.14,36,270, Rs.12,12,898, and Rs.96,237 were unjustified because evidence for these amounts had been furnished. The assessee submitted that the Assessing Officer (AO) had examined the books of accounts and vouchers and had verified cash payments of Rs.2,01,49,199, with evidence produced for Rs.1,88,35,721. In light of this compliance, it was unreasonable to treat the case as one of absent evidence. The assessee also pointed out that accounts had been audited under section 12A(b) with Form 10B submitted, showing amounts applied for charitable purposes, and there were no qualifications indicating unvouched expenditure.
