CHHATRAPATI SHIVAJI MAHARAJ SMARAK SAMITI,MUMBAI vs. ITO (EXEMPTION) WARD 1(2), MUMBAI

आयकरअपीलीयअिधकरण�ायपीठ मुंबईम�। IN THE INCOME TAX APPELLATE TRIBUNAL “(SMC)” BENCH, MUMBAI BEFORE SHRI ANIKESH BANERJEE, JM & SHRI ARUN KHODPIA, AM I.T.A. No.6792/Mum/2025 (Assessment Year: 2018-19) Chhatrapati Shivaji Maharaj The Assessing Officer, Exem Ward Smarak Samiti 1(2) 26 Prabhoo Ghar, Hanuman Piramal Chambers, Lalbaug, Parel, Vs. Cross Road No. 2, Vile Parle Mumbai – 400012, Maharashtra. East, Mumbai- 400057. PAN: AAATC3188P

Assessee- अपीलाथ� / Appellant Revenue-��थ�/ Respondent :

Assessee by : Shri Gunjan Kakkad, Adv. Revenue by : Shri Pasale Naganath Bhimrao (Sr. DR.) Date of Hearing : 20.05.2026 Date of Pronouncement : 25.06.2026

ITA No. 6792/Mum/2025; Chhatrapati Shivaji Maharaj Smarak Smiti O R D E R Per Arun Khodpia, AM:

The captioned appeal is filed by the assessee, against the order of

Commissioner of Income Tax Appeals/ National Faceless Appeal Centre (NFAC),

Delhi [“the Ld. CIT(A)] dated 02.10.2025 for the assessment year 2018-19, which

in turn arises from assessment order u/s 143(1) of the Income Tax Act, 1961 (“the

Act”) dated 30.04.2021 passed by The Assessing Officer – Exemption Ward 1(2),

Mumbai (in short, “the Ld. AO”). The grounds of appeal raised by the assessee

are as under:

“1. On the facts and circumstances of the case and in law, the Learned Commissioner of Income- tax Appeal (hereinafter for sake of brevity referred to as the "Ld. CIT(A)"] has erred in upholding the assessment order dated 30/04/2021 where the income of the Appellant was assessed at Rs. 39,34,058/-, 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) and the assessing officer has failed to appreciate that all the income and expenditure incurred by the Appellant was in accordance with the objects of the Appellant Trust and it was eligible to claim exemption under section 11 of the Income-tax Act, 1961 ("the Act").” 2. The brief facts of the case are, that the assessee has furnished its return

of income on 25.10.2018 showing income at NIL. The case of assessee,

thereafter, was selected for scrutiny. Accordingly, notice u/s. 143(2) and 142(1)

were issued. The notices were duly responded by the assessee by furnishing

written submissions. On a scrutiny of details available, the Ld. AO noticed that

the assessee has received an amount of Rs. 39,34,058/- shown under the head

“Receipt from Incidental Objects”. The Ld. AO further observed that the above

ITA No. 6792/Mum/2025; Chhatrapati Shivaji Maharaj Smarak Smiti amount has been received on account of “Cricket and Football Field and “New

Cricket” and “RYP Invitational Sports Meet” for Rs. 30,80,744/- and Rs.

8,53,314/-, respectively. To know the nature of such receipts, the assessee was

issued a notice to furnish requisite details. The assessee had not responded to

such queries of the Ld. AO. Another 142(1) notices were issued on 23.02.2021

and 26.02.2021. However, the assessee had not furnished any details of

donation received in terms of receipts from incidental objects. Again 142(1) was

issued on 16.04.2021 requesting assessee to furnish its reply clarifying the

nature of receipts from incidental objects. However, till completion of

assessment no submissions were made by the assessee. The Ld. AO, thereafter,

observed that the assessee has no justification and explanation regarding the

receipts from incidental objects, therefore, the same is being added to the total

income of assessee as receipts out of activities done by the society beyond the

scope of the bylaws of the society. The total taxable income of the assessee

society was thereafter computed at Rs. 39,34,058/-.

Ld. AO before the Ld. CIT(A). However, the assessee was unable to convince with

its contention and accordingly, the Ld. CIT has dismissed, the appeal of assessee

with the following observations:

ITA No. 6792/Mum/2025; Chhatrapati Shivaji Maharaj Smarak Smiti “7.4. Further opportunities were also granted to the appellant assessee to explain the source of the receipts by the AO. The appellant is the one claiming deductions and these provisions are of strict interpretation. It is the liability of the claimant to prove its claim or to substantiate the same. In this specific case except for making a claim the appellant did not bother to explain the same with evidence even though it was granted ample opportunity by the AO as well as the NFAC.

7.5. It is misconceived to claim that the AO failed to consider the claim. In the instant case the AO was bound to verify the claim and, in its absence, disallow it. The claim was disallowed purely on facts of the case. The facts of the case not having changed now, there is no reason to interfere with the order.”

assessee is before us in the present matter.

society has an object to promote the sports and under that category all such

income and expenditure are covered under the objects of the society. It is

further submitted that the assessee, while its reply before the Ld. AO had

categorically mentioned that we are engaged in the promotion of Sports, Yoga,

etc. We wish to submit that in the income tax return we had inadvertently stated

amount of Rs. 39,34,058/- under receipts from incidental objects consisting of

Rs. 30,80,744/- for game of cricket and Rs. 8,53,315/- for the RYP International

Meet Sports Competition Event organized by the trust. Such receipts are

towards the main object of the trust and so the various expenditure of Rs.

ITA No. 6792/Mum/2025; Chhatrapati Shivaji Maharaj Smarak Smiti 19,95,980/- debited to the income and expenditure account, towards RYP

International Meet Sports Competition Event organized by the trust. The details

of expenditure are furnished before the AO. The assessee furnished such details

at Page No. 30 of the Assessee’s Paper Book. The assessee also drew our

attention to the Memorandum of Association of the assessee society wherein

under the aims and objects of the society, item no. (d) reads as under:

“Creation, maintenance, supply of or support of Gymnasium, Physical Culture centres and other means of Public recreation for advancement of health and hygiene, sports complex swimming pool.”

society has the object to promote the sports and, therefore, expenditure

incurred on such activities cannot be treated as taxable income of the assessee

society.

details supported with corroborative evidences before the Ld. AO as well as

before the Ld. CIT(A). If the assessee has corroborative evidences those can be

produced before the authorities below, so as the same can be examined and the

assessee’s claim can be verified in terms of such evidences. The matter,

therefore, needs to be set aside to the file of Ld. CIT(A) for fresh adjudication,

wherein the onus would be on the assessee to explain its case.

ITA No. 6792/Mum/2025; Chhatrapati Shivaji Maharaj Smarak Smiti

available on record and the details along with additional information furnished

by the assessee before us. Prima facie as per objects of the assessee society, the

assessee society is engaged and have the object to promote this Sports for which

they have received certain donations and the expenditure were also incurred.

Carrying out of promotional sports activity by the assessee is not in dispute.

However, to substantiate such activities and events, the assessee society is

under obligation to explain all such activities during the assessment proceedings

before the Ld. AO, where the assessee society has failed to do so. Further, the

Ld. CIT(A) was also not able to justifiably decide the case of assessee in absence

of necessary information and requisite evidences for carrying out sports

activities in terms of objects of the trust. We, thus, under such deliberations,

facts and circumstances are of the considered view to restore this matter back

to the file of Ld. CIT(A) for fresh adjudication, wherein the assessee society would

be at liberty to furnish all the necessary details regarding the subjected receipts

and expenditure, which have been disputed by the Ld. AO.

opportunity of being heard in the set aside proceedings. The assessee is also

ITA No. 6792/Mum/2025; Chhatrapati Shivaji Maharaj Smarak Smiti directed to furnish all the necessary information and corroborative evidences to

claim its entitlement in terms of its objects and provisions of the Act.

terms.

Order pronounced in the open court on 25-06-2026.

Sd/- Sd/- (ANIKESH BANERJEE) (ARUN KHODPIA) JUDICIAL MEMBER ACCOUNTANT MEMBER

Mumbai, Dated : 25-06-2026. Soumili Das, PS

Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. DR, ITAT, Mumbai 4. Guard File 5. CIT

BY ORDER,

ITA No. 6792/Mum/2025; Chhatrapati Shivaji Maharaj Smarak Smiti (Dy./Asstt. Registrar)

ITAT, Mumbai