THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) vs. GUJARAT CRICKET ASSOCIATION

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TAXAP/802/2019HC GujaratGJHC24066384201913 January 2020Author: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the issue was squarely covered by its recent pronouncement in the case of Director of Income Tax (Exemption) vs. Gujarat Cricket Association, Tax Appeal No.268 of 2012 and allied appeals, decided on September 27, 2019. Based on this precedent, the High Court found no merit in the Revenue's appeal. The reasoning is that the Gujarat Cricket Association's case, decided by the same High Court, dealt with similar issues concerning the applicability of provisos to Section 2(15) and the allowability of exemptions under Sections 11 and 12. The ratio decidendi is that if a prior judgment of the same High Court has authoritatively decided the identical legal question, subsequent appeals on the same point should follow that precedent. Consequently, the appeal filed by the Revenue was dismissed. No specific issue was left undecided.

What were the facts?

The Revenue has filed this appeal under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Ahmedabad Bench "A", dated April 30, 2019, for Assessment Year 2014-15. The appeal challenges the Tribunal's decision regarding the allowability of exemptions under Sections 11 and 12 of the Act to the assessee, Gujarat Cricket Association. The Assessing Officer had denied these exemptions, and the Tribunal's order is under challenge. The amount in dispute is not explicitly stated, but the appeal concerns the denial of exemptions and disallowance of certain donations and deductions.

What were the issues?

The Tribunal was required to decide the following substantial questions of law: 1. Whether the Tribunal was justified in negating the Assessing Officer's findings that the assessee is covered by the first and second provisos to Section 2(15) read with Section 13(8) of the Act, thus disallowing exemptions under Sections 11 & 12. 2. Whether the Tribunal was justified in confirming the disallowance of corpus donations of Rs.81,18,20,345/- under Section 11(1)(d) without appreciating that the assessee failed to discharge its onus. 3. Whether the Tribunal was justified in allowing a deduction of Rs.2,02,38,007/- at 15% under Section 11(1)(a) without appreciating that the assessee is covered by the first and second provisos to Section 2(15) read with Section 13(8), thus disallowing exemptions under Sections 11 & 12. The Revenue contended that the assessee falls under the provisos to Section 2(15) and Section 13(8), making exemptions under Sections 11 & 12 impermissible. The Revenue also argued that the assessee failed to discharge its onus regarding corpus donations. The judgment does not record specific contentions for the assessee.

Which sections of the Income-tax Act were involved?

Section 260A,Section 2(15),Section 13(8),Section 11,Section 12,Section 11(1)(d),Section 11(1)(a)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/802/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 802 of 2019 ========================================================== THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) Versus GUJARAT CRICKET ASSOCIATION ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA Date : 13/01/2020

ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA)

1.

This tax appeal under Section 260A of the Income Tax Act, 1961 (for short “the Act, 1961”) is at the instance of the Revenue and is directed against the order passed by the Income Tax Appellate, Ahmedabad, Bench “A” dated 30th April, 2019 in the ITA No.2589/Ahd/2017 for the A.Y.2014-15. 2. The Revenue has formulated the following questions as the substantial questions of law arising in the present appeal; “(A) Whether, on the facts and in the circumstances of the case and in law, the Appellate Tribunal was justified in negating the findings of the Assessing Officer that the assessee is covered by the first and second proviso to section 2(15) r.w.s 13(8) of the Act and thus, exemption u/s. 11 & 12 of the Act is not allowable to the assessee? (B) Whether on the facts and in the circumstances of the case and in law, the Appellate Tribunal was justified in confirming the decision of disallowance made in C/TAXAP/802/2019 ORDER respect of the claim of corpus donations of Rs.81,18,20,345/- u/s. 11(1)(d) of the Act without appreciating that the assessee failed to discharge its onus by not bringing anything on record in support of its claim of corpus donation? (C ) Whether on the facts and in the circumstances of the case and in law, the Appellate Tribunal was justified in allowing @ 15% the deduction of Rs.2,02,38,007/- u/s.11(1)(a) without appreciating that the assessee is covered by the first and second proviso to section 2(15) r.w.s 13(8) of the Act and thus, exemption u/s.11 & 12 of the Act is not allowable to the assessee?”

3.

Vahid

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