Brief of the case:
In the case of M/s Tamil Nadu Cricket Association Vs. DDIT (Ex.) Madras Bench of ITAT have observed the activities carried out by assessee in nature of charitable or business. After detailed examination it was held that assessee did not engaged in any business or commercial activity and hence liable for the exemption u/s 11. Also in the AY 2008-09 assessee claimed deduction on account of depreciation which was rejected by ITAT. Tribunal after examining held that When the assessee claims the cost of the capital expenditure as exemption under Section 11 of the Act, then the cost of the capital asset becomes NIL. Hence, no depreciation can be claimed.
Facts of the case:
- Assessee is a registered society under the Tamil Nadu Societies Registration Act, was registered under Section 12AA as a charitable institution with a object of promoting the sport of cricket in the State of Tamil Nadu and in the Union Territory of Puducherry.
- Assessee conducts cricket tournaments and provides cricket coaching.
- The members of the assessee-society are the district associations and the cricket clubs in the city of Chennai.
- Assessee is a member of BCCI who is member of ICI.
- Assessee has constructed a modern cricket stadium at Chennai with state of art facilities for conducting international cricket matches.
- Assessee, being a State Cricket Association, is entitled to revenue on sale of tickets when it conducts international matches conducted by BCCI including IPL. Further assessee would also be entitled to all in-stadia sponsorships, advertisements and beverage revenue, etc.
- assessee earns income under the following heads:-
(1) Subscription from members
(2) Sale of tickets
(3) Revenue from advertisements
(4) Receipts from BCCI
(5) Interest from bank deposits
