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0 ,l- lhrky{eh] U;kf;d lnL; ,oa Jh jkBkSM+ dey's k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@

ITA. No. 37/JPR/2025 fu/kZkj.k o"kZ@

Assessment Years : 2016-17 Rajasthan Cricket Association cuke The ITO, Exemption, North Block, SMS Stadium, Jan Vs. Ward-1, Path, Ambedkar Circle, Jaipur. Jaipur.

LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAATR0798J vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@

Assessee by : Shri Shyam Lal Agarwal, C.A. &

Shri Tarun Agarwal, C.A.

jktLo dh vksj ls Revenue by : Shri Gautam Singh Choudhary, JCIT-Sr.DR lquokbZ dh rkjh[k@

Date of Hearing : 19/02/2025 mn?kks"k.kk dh rkjh[k@Date of Pronouncement : 15/04/2025 vkns'k@ ORDER PER: RATHOD KAMLESH JAYANTBHAI, AM By way of present appeal, the assessee challenges the order of National Faceless Appeal Centre, Delhi (for short CIT(A) dated 18.11.2024, the dispute relates to the assessment year 2016-17 that the order of Ld. CIT(A) arises because the assessee challenged the order passed u/s 154 of the Income Tax Act, 1961 (for short “Act”) dated 15.12.2020 passed by ITO, Exemption, Ward-1, Jaipur ( for short AO) before him.

2. The brief facts of the case are that the assessee filed return of income declaring NIL income for the year under consideration on 15.10.2016. The case of the assessee was selected for scrutiny under CASS. Statutory notices were issued and served upon the assessee. In response the assessee filed the reply and submitted the details required.

2.1 The assessee is registered as a society under the Rajasthan Societies Registration Act, 1958. The certificate issued u/s. 12AA of the Income Tax Act, 1961 was withdrawn by the Commissioner of Income Tax-I, Jaipur on 28.12.2010 w.e.f. 2005-06 which was subject matter of appeal and our own Hon’ble Rajasthan High Court disposed of that appeal in favour of the assessee.

2.2 In the return of income filed, association has declared total receipts at Rs. 1,80,34,791/- out of which Rs. 1,53,29,572/- claimed as application of income and claimed income accumulated or set a part u/s. 11(1)(a) of the Act upto 15 % at Rs. 27,05,219 [ 15 % of 1,80,34,791/- ] and thereby assessee trust declared Nil total income.

2.3 Ld. AO in the assessment proceeding noted that during the year under consideration the assessee has shown receipt at Rs. 1,80,34,791/- against which expenditure of Rs. 4,88,80,927/- resulting in excess of expenditure over income at Rs. 3,08,46,136/- . Based on that observation the claim made by the assessee to the extent of 15 % of income for an amount of Rs. 27,05,219/- was denied as claimed as per provision of section 11(1)(a) of the Act and thereby the assessment order was passed on 12.12.2018.

2.4 The appellant-assessee filed an application u/s. 154 of the Act stating that the excess of expenditure claimed by them were out of income of earlier years and therefore 15 % claim against the income of current year is allowable as per provision of section 11(1)(a) of the Act. That application of the assessee-appellant trust was rejected by the ld. AO by observing as under:

Now assessee has filed application us/ 154 with the explanation that the excess expenditure was met out from accumulated funds of earlier years i.e. F.Y.2011-12, 2012-13 & 2012-13 and therefore, set- apart of 15% claimed is correct and therefore, requested to rectify the same by passing order u/s 154 of I.T. Act, 1961. The justification furnished in the application in support of its submission is as under:-

Here it is not known either from the present application or assessment records that the assessee has filed Form No.10 within the stipulated time in the prescribed form and procedure and the purpose for which the same were filed in F.Ys.2011-12 to 2013-14.

This is particularly so despite affording reasonable and sufficient opportunities to the assessee dur