The Delhi High Court has admitted the Revenue’s appeal against the order passed by the Income Tax Appellate Tribunal (ITAT) in the case of Delhi and District Cricket Association. The appeal has been admitted as other connected appeals in the cases of All India Football Federation and India International Centre are already pending before the High Court on the same issue relating to eligibility of sports associations for exemption under Sections 11 and 12 of the Income-tax Act, 1961.

The High Court noted that the Delhi ITAT had dismissed the Revenue’s appeal and held the assessee eligible for the benefit of exemption under Sections 11 and 12 of the Act. The High Court further considered the Revenue’s reliance on the judgment of the Supreme Court in Ahmedabad Urban Development Authority, wherein the issue pertaining to sports associations and their entitlement to exemption in accordance with Section 2(15) of the Act was examined, and the Assessing Officer was directed to adjudicate the matter afresh.

Learned counsel for the Income Tax Department relied upon the decision of the Supreme Court in Civil Appeal No. 21762 of 2017 titled ACIT (Exemptions) v. Ahmedabad Urban Development Authority, wherein the Supreme Court observed as under:

“F. Sports associations
So far as the state cricket associations are concerned (Saurashtra, Gujarat, Rajasthan, Baroda, and Rajkot), this Court is of the opinion that the matter requires further scrutiny, in light of the discussion in paragraphs 228–238 of the judgment. Accordingly, a direction is issued that the AO shall adjudicate the matter afresh after issuing notice to the concerned assessees and examining the relevant material indicated in the previous paragraphs of this judgment. Furthermore, if any consequential order needs to be issued, the same shall be done and resulting actions, including assessment orders shall be passed in accordance with the law under relevant provisions of the Income Tax Act.”

Accordingly, in ITA No. 501 of 2023 and ITA No. 407 of 2025, the Delhi High Court framed the following question of law while admitting the Revenue’s appeal:

“Whether on the facts and in circumstances of the case and in law, Hon'ble Income Tax Appellate Tribunal is justified in allowing the benefit of exemption under Sections 11 and 12 of the Act ignoring that the activities of the assessee are commercial in nature and covered by proviso to Section 2(15) of the Income Tax Act, 1961?”

The High Court has listed the matter for hearing on 17 March 2026.

[Commissioner of Income Tax (Exemptions), Delhi v. All India Football Federation & Delhi and District Cricket Association – ITA 501/2023 & ITA 407/2025 (Delhi High Court)]