Is Sachin Tendulkar a cricketer or an actor or an artist? Anyone will answer this question in a moment. But one such incident came when there was a big controversy over whether he is a cricketer or an actor or an artist.
In the same year when India won the Cricket World Cup in 2011, Sachin himself said in a case of tax deduction that he is not an professional cricketer but an actor and if he is not considered an actor, he is an artist. Sachin’s argument was rejected by the tax authorities in the Sachin R. Tendulkar v. Assistant Commissioner of Income Tax case. The Income Tax Appellate Tribunal (ITAT), however, ruled the dispute and said that Sachin Tendulkar is also an artist. The Appellate Tribunal also gave Sachin the benefit of tax deduction. Let us know in detail what was the matter….
Tax deduction dispute under section 80RR
According to the online platform Taxguru, this case was largely about tax deduction under section 80RR of the Income Tax Act 1995. Tendulkar received Rs 5,92,31,211 from various advertisements and promotions for ESPN Star Sports, PepsiCo and VISA. After this, Sachin claimed deduction of Rs 1,77,69,363, as he had received this amount in foreign currency. The whole matter was divided into two parts.
Is assesi writer, playwright or artist, musician, actor or player?
Is the amount of controversy that Sachin has received from her professional work?
Tendulkar calls himself a non-professional cricketer
Sachin Tendulkar had claimed that he is an actor and model and this is his business and profession. According to him, he is just a non-professional cricketer. The money he receives from playing BCCI in the form of cricket and logo money is income from other sources, because acting is his profession. He also said that since 1997, he is getting the benefit of tax deduction in the field of acting, so it should not be stopped now. Sachin also said that if he is not assessed as an actor, he should be assessed as an artist because he is a public performer.
The Assessing Officer raised the question that if Sachin is not a cricketer, then who else will be a cricketer
The Assessing Officer (AO) and CIT were unable to accept Sachin’s argument. The AO decided the definition of a professional cricketer with the help of the Oxford Dictionary. According to this, the professional cricketer is one who is associated with the profession of cricket, the other is that he plays cricket as a paid job and not as an amateur. In another way it can be said that playing cricket is his livelihood and hence it is his profession. The AO also raised the question that if Sachin is not a cricketer, then who else should be considered a cricketer.
CIT also rejected the argument of being an artist
AO also said that Sachin did not work in these commercials on the strength of acting arts, but on the strength of success and fame in cricket. Therefore the benefit of tax deduction cannot be given on the basis of acting only and the disputed income is the income related to cricket. The CIT also agreed with the opinion of the AO that whenever Sachin TV Commercial earns money from sponsorship shows, it will be treated as income related to supporting activities and not the income of the cricket profession. The CIT also rejected the argument that Sachin is an artist as he only appeals in advertisements or shows. Hence they cannot be given the benefit of section 80RR of Income Tax Act.
Tax department lawyer said that Sachin is a victim of Identity Crisis
Sachin’s counsel argued that even though Sachin gets advertisements only because of cricket, nowhere in the Section 80RR has any capacity for the performance of the artist been set. Also, a person can be in two professions simultaneously. The opposing counsel cited the case of Harsh Bhogle v. AO, which ruled that the presenter or commentator cannot take advantage of section 80RR as he is not an artist. The opposing counsel even said that Assisi (Sachin Tendulkar) is a victim of Identity Crisis. He does not know whether he is a cricketer or an artist or an actor. Therefore they should not give any kind of tax benefit.
ITAT said that there is no restriction on holding more than one profession
The ITAT, however, quashed the decision of both AO and CIT. He said that Sachin is indeed an artist. ITAT said that of course Sachin is a cricketer, but when he is in front of the light and the camera, he has to use his creativity, imagination and skill as an artist. He has his own skills to work in advertising. Therefore, ITAT gave him the benefit of tax deduction as an artist. The ITAT stated that there is no restriction on holding more than one profession. In this way, Sachin won in this tax dispute too. People say that nothing is impossible for him, whether on the field or off the field.
What does section 80RR of the Income Tax Act say?
Indian resident writer, playwright, artist, musician, actor or sportsperson (including athlete) gets tax deduction under certain conditions under Section 80RR of the Income Tax Act, 1995, according to the online platform IndianCanoon.org. This benefit comes when they have professional income from the government or foreigner of another country. While computing gross income, a portion of such income can be deducted from the total income.