Mumbai: The Control Board for Crickets in India (BCCI) has scored six in the field of income tax litigation as a tribunal income tax (ITAT), Mumbai Bench, has argued that the registration below the 12A / 12AA ac acts cannot be rejected.
The entity can claim tax exemptions in certain years (if qualified for claims) only if it has valid registration.
Based on the recommendations of the Justice Committee R M Lodha, BCCI has changed the association, regulations and regulations.
Thus, while it has existing registration given in 1996, post-modification of its objectives on August 21, 2018, he was looking for new registration.
The I-T President Commissioner stated that BCCI activities in accordance with the Moa were amended, reading with the rules and regulations, facilitating businesses to benefit the commercial exploitation of cricket through franchisee format with franchise format.
Given the surplus produced from the IPL match, he argues that BCCI activities cannot be considered ‘charity’ and refute registration.
In his appeal before itat, BCCI proposed that the Commissioner of the Principal has placed an undue dependence on the surplus produced from the IPL match, without considering the overall activities holistically.
While rejection of registration was held legally eliminated based on the technical analysis of the provisions of I-T and the previous judicial precedent, additional observations made by Bench Itat consisting of Pramod Kumar, vice president; And Ravish Sood, Judicial members, will be happy with the cricket’s lover.
Bench saw that the basic character of the activity of popularizing crickets was not lost only because of the operational model of the cricket tournament, whether IPL or other tournaments, more entertaining or more economical.
They also noted that additional funds produced by holding IPL tournaments were used to promote cricket.
“Improving the rules of the game, adding entertainment value to it and makes it economically interesting may be a purist nightmare, but the same factors can also be seen as radical and innovative ideas to popularize the game – like Détre from a BCCI institution and this is how we are Seeing it.
“Behind the good-analysis of analysis of the provisions of Act It.
They show that by itself, registration does not provide tax exceptions.
Feasibility is determined in the year-on-year based on the actual activities of the Taxpayer entity and the exception limit for income from commercial activities that have been carved.
This is not a rejection of registration, but the refusal of I-T benefits if income from commercial activities exceeds the specific amount, which is the core of this problem.
On this foundation, the bench held back the rejection of registration to BCCI legally weakened.