ITAT Grants Tax Exemption to Kapil Dev on ₹1.5 Crore BCCI Payment for Services to Cricket

The Income Tax Appellate Tribunal (ITAT) has ruled that the ₹1.5 crore one-time benefit awarded to former cricketer Kapil Dev by the Board of Control for Cricket in India (BCCI) is exempt from taxation under Section 56(2)(vii) of the Income Tax Act.

The tribunal noted that since BCCI is a registered charitable organization under Section 12AA, the amount received by Kapil Dev qualifies as a gift and is not taxable.

Additionally, the ITAT emphasized that tax should not be collected solely due to an error in the assessee's tax return.

This decision overturns the earlier dismissal by the Commissioner of Income Tax (Appeals), thereby granting relief to Kapil Dev. ​