Tribunal order that took away BCCI's tax exemption set aside

IT ACT EMPOWERS STATUTORY BODIES TO ISSUE 'ADVISORIES' OR NON-STATUTORY OPINIONS, NOT ORDERS, THE HIGH COURT BENCH SAID

- Karuna Nidhi

MUMBAI: The Bombay high court on Tuesday set aside the Income Tax Appellate Tribunal's (ITAT) order upholding the cancellation of tax exemption granted to the Board of Control for Cricket in India (BCCI) in 1996. Tax authorities need to follow due process in deciding the exemption issue independently, the division bench of justices MS Sonak and Jitendra Jain said.

"The revenue cannot adopt such contradictory stances or blow hot and cold in the same breath," they said.

The BCCI is a society registered under the Tamil Nadu Societies Registration Act, 1975, with the aim of promoting sports, particularly cricket. On February 12, 1996, it was granted exemption as a charitable institution under the Income Tax Act, 1961.