At a time when the Board of Control for Cricket in India (BCCI) is in a soup over the sleaze in its sporting extravaganza IPL, it has again applied for a tax exemption that was withdrawn last year by the income tax department.
The taxmen had cancelled the exemptions stating that BCCI was engaged in commercial activities, which it was not supposed to undertake being a charitable institution promoting sports.
After the withdrawal of exemptions, the BCCI has received a tax demand notice for around Rs 118 crore for assessment year 2006-07, against which it has appealed in the Income Tax Appellate Tribunal. The amount was later adjusted. However, the BCCI applied for a fresh exemption.
Senior officials believe that the BCCI which is expecting an exemption again, will not get it as the Finance Bill 2010 also changed the definition of the charitable entity from this month.
?The application of BCCI is pending before the DIT (Exemptions), so it would be treated with reference to the changed definition that does not allow any commercial activity by the assessee. So, it is unlikely that the exemption would be given,? an official said. While another official pointed out, ?In the case of BCCI, though, I think they are unlikely to be granted exemption since it will reverse the earlier decision of the Directorate General of Exemptions. But it is within their right to apply again.?