ITAT allows tax exemption to Kapil Dev on ₹1.5 crore given by BCCI for service to cricket

However, the ITAT has now said that the only right amount of tax should be collected from the right person in accordance with law and Article 265 of the Constitution provides that no tax could be collected except by an authority of law.

“When a statute specifically provides a particular exemption of a particular receipt from tax, the said receipt cannot be brought to tax merely because the assessee had offered erroneously in the return of income. Ultimately, income is to be determined in accordance with the provisions of the Act and revenue cannot take advantage of ignorance of the assessee while determining the taxable income,” the tribunal underlined.

It did not see it fit to restore the appeal before the CIT(A) for a fresh decision and instead decided the issue in Dev’s favour.

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