MANINDER SINGH,NEW DELHI vs. ACIT CIRCLE-59(1), NEW DELHI

The solitary grievance of the assessee is that the CIT(A) erred in confirming the addition of Rs.75,09,600/- u/s. 56 (2) (vii) of the Act on account of receipt of one time reward from BCCI.

The appellant is a well known former Indian cricketer. During the year he received an award from BCCI an amount of Rs.75,09,600/- towards one-time benefit payment to former cricketers in recognition of the services to Indian Cricket.

The assessee did not include this amount in his return of income. Strongly placing reliance on the CBDT circular No.447 dated 22.01.1986.

The AO during the course of the assessment proceedings dismissed this reliance and referred to CBDT Circular No.2 of 2014 and pointed out that circular No.447 dated 22.01.1986 has been superseded and added the amount of Rs.75,09,600/- to the total income of the assessee.

The assessee carried the matter before the CIT(A) but without any success.

Representatives of both the sides were heard at length. Case record carefully perused. The bone of contention is whether the onetime payment received from BCCI is exempt from tax or not. The answer lies in the provisions of section 56 (2) (vii) second proviso which states that “clause (vii) was not apply to any some of money or any property received from (g) any trust or institution registered u/s.12 AA”.

We find that BCCI is a registered trust u/s.12 AA and the said evidence is available in the public domain.

In the light of the aforementioned facts we do not find any merit in the impugned addition and accordingly direct the AO to delete the addition of Rs.75,09,600/-.

In the result, the appeal filed by the assessee is allowed.

Decision announced in the open court in the presence of both the representatives on 06.01.2021.