CIT (Exemption) Vs Orissa Cricket Association (Orissa High Court)
The Revenue filed an appeal against the common order dated 26 December 2017 of the Income Tax Appellate Tribunal (ITAT), Cuttack Bench, in ITA No. 335/CTK/2017 for Assessment Year 1997-98 and ITA No. 210/CTK/2016 for Assessment Year 2011-12, challenging the order relating to AY 1997-98. The appeal was admitted on the substantial question of law as to whether, while considering an application for registration under Section 12AA of the Income-tax Act, 1961, the Commissioner could consider facts arising from a survey, search and seizure and an alleged violation of Section 13(1)(c) for the purpose of recording satisfaction regarding grant of registration.
The Revenue submitted that the Commissioner of Income Tax (Exemption) had rightly rejected the assessee’s application for registration by order dated 26 May 2017. According to the Revenue, registration was refused primarily because funds of the assessee were diverted for the personal benefit of office bearers in violation of Section 13(1)(c), receipts from the Board of Control for Cricket in India (BCCI) were shown as corpus funds instead of revenue receipts, and a survey under Section 133A at the assessee’s premises together with search and seizure under Section 132 at the residence of the honorary secretary resulted in incriminating documents and books of account being found and impounded. The Revenue submitted that the resulting demand for the block period had been confirmed by the first appellate authority and that the ITAT erred in setting aside the Commissioner’s order.
