Case Law Details
Hyderabad Cricket Association Vs. Jt. Director of Income Tax (ITAT Hyderabad)
A survey u/s. 133A of the Act was conducted on 21-10-2011 in the office premises of the assessee located at Rajiv Gandhi International Cricket Stadium, Uppal, Hyderabad. It was found that the assessee was carrying on activities which are not charitable in nature. It was observed that the assessee was deriving income from various commercial sources including receipts from league fees, sale of tickets of One Day International matches, IPL matches, advertisement charges, franchise fees and sponsorship fees from various companies.
In view of the above, DIT(E) was of the opinion that the assessee has lost its character as a charitable society in view of the first proviso to Section 2(15) of the Act.
AO observed that the assessee has no valid registration u/s. 12AA of the Act for the AY. 2006-07 in view of its cancellation by DIT(E), even if such registration were available, the exemption u/s. 11 is not allowable in view of the assessee’s activities which are neither charitable nor allowed by its own Memorandum of Association. Accordingly, exemption u/s. 11 is denied by the AO.
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