BCCI waived tax on Rs 1.5 crore given to Kapil Dev

Mumbai – BCCI gave a check of Rs 100,000 to former cricketer Kapil Dev, Rs 1.5 crore. The Income Tax Appellate Tribunal has ruled that an amount of Rs 1.5 crore is not taxable. In the evaluation returns for the year 2013-14, Kapil Dev voluntarily expressed a desire to pay the tax on the amount given by the BCCI and was taxed.

After the decisions of several tribunals, Kapil Dev was advised that the gift received can be exempted from tax under Section 56 (2) (7) of the Income Tax Act. After 1993, Kapil Dev filed an appeal before the Income Tax Commissioner (Appeal) (Appeal) (CIT (A). Kapil Dev also filed an affidavit stating the reason behind the delay.

Members of the tribunal said that since BCCI (Board of Control for Cricket in India) is registered under Section 12AA, the lump sum benefit received by the cricketer will be eligible for tax exemption according to Section 56 (2) (7) of the Income Tax Act. The tribunal said, “Since the provisions of the law are clear in this regard, we are making decisions on this issue and not sending it to the Income Tax Commissioner (Appeal) (Appeal) (CIT (A)). The request made by the taxpayer (Kapil Dev) has been accepted here.”

The ITAT further said that “in cases where a law has been provided to exemption the amount received from tax and the taxpayer has expressed his desire to pay tax by mistake, it should not be taxed.” The Income of Income should be done under the provisions of the Act and the department should not take advantage of the taxpayer’s ignorance while calculating the taxable income.