Case Law Details
ACIT Vs Shri Sameer Sudhakar Dighe (ITAT Mumbai)
The facts available in public domain are that the assessee has played national as well as international cricket. The assessee has played international test matches numbering 6 and ODI’s numbering 23.The assessee is full time employee of Air India. The benefit match was conducted by the BCCI, which is a regulatory body for cricket in India to appreciate the personal talent and skill in this sport because the assessee is a retire sportsman and the proceeds arising out of this benefit match is in the nature of award. There is no direct nexus between the payment and assessee’s profession and these receipts being capital in nature cannot be brought to tax.
The AO assessed the proceeds of benefit match of the assessee under section 56(2)(vii)(a) of the Act, which is brought in the statue book with effect from 01.10.2009. But we find that this amount represents the gratitude from the fans and followers by attending the benefit match conducting in honor of the assessee, who is a retired cricketer of international repute. This type of receipts has specifically been exempted by the CBDT circular No. 477 [F. No. 199/86-IT(A-1)] dtd. 22.01.1986, which states that the amount paid to amateur sportsman who is not a professional will not be liable to tax in his hands as it would not be in the nature of income. The assessee was an amateur cricketer and his profession is employment with Air India from where he is getting salary. He played the game of cricket for India as his passion and the receipts of the net proceeds for the benefit match was only in the nature of appreciation of his personal achievements and talent and thus, cannot be brought to tax by invoking the provisions of section 56(2)(vii)(a) of the Act. This proceeds from benefit match received by assessee is in appreciation of his past achievements in the International Cricket arena and such type of receipt cannot be taxed because these type of receipts are specifically exempted.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
This appeal by the Revenue is arising out of the order of Commissioner of Income Tax-30, Mumbai [in short CIT(A)], in appeal No. CIT(A)-30/AC19(3)/238/2014-15 dated 03-12-2015. The Assessment was framed by the Asst. Commissioner of Income Tax, Circle-16(2), Mumbai (in short ‘ACIT’) for the A.Y. 2011-12 vide order dated 25-03-2014 under section 143(3) of the Income Tax Act, 1961(hereinafter ‘the Act’).
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