Memorandum of Association
Bombay HC quashes income tax dept order contesting tax-exempt status of BCCI
This story was originally published at 20:27 IST on 18 February 2025
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NEW DELHI – The Bombay High Court on Tuesday quashed an order by the Income Tax Department that the Board of Control for Cricket in India does not have a tax-exempt status from 2006 since the cricket body had changed its memorandum of association that year.
The high court quashed the income tax direction, issued in 2009, on the ground that the order was only an advisory and a non-statutory exercise. The high court clarified that the issues of the exemption or cancellation of registration on merits are left open because they will have to be decided by the prescribed statutory authorities in the manner prescribed under the statute.
The income tax department order had said that since the board modified its objects and not intimated that to the tax department, the registration granted to the sports body under Section 12A of the Income Tax Act, 1961, was not valid after 2006. Section 12A provides tax-exempt status to non-profit organisations like charitable trusts, welfare societies, and religious institutions.
The cricket board, a society established under the Tamil Nadu Societies Registration Act to promote sports, particularly cricket, was granted registration under Section 12A in 1996. The BCCI amended its memorandum of association in 2006 and 2007. BCCI stated that the amendment did not change its fundamental objective, which was to promote sports. However, the changes were not intimated to the tax authorities.
Consequently, the tax department issued the order in 2009 and asked the BCCI to file a fresh application for registration under Section 12AA of the 1961 Act, along with necessary documents. The cricket board moved the high court after the challenges in the income tax appellate tribunal favoured the tax department. End
Reported by Surya Tripathi
Edited by Saji George Titus
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