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TMI Blog2024 (8) TMI 554X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has claimed its income as exempt u/s. 10 of the Act came to be considered in the case of Market Committee, Sirsa [ 2017 (7) TMI 920 - BOMBAY HIGH COURT] as held where the income of the assessee was exempted under Section 10(20) of the Act which falls in Chapter III of the Act. There was no income of the assessee which would fall under heading profits and gains of business or profession . Once that was so, it could not be said that the provisions of Section 44AB were applicable and as a sequel thereto, penalty under Section 271B of the Act was not leviable. Thus provisions of section 44AB of the Act will not be applicable when there was no income of the assessee which would fall under the head profits and gains of business and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 3. The Ld A.R placed his reliance on the decision rendered by the Hon ble Punjab Haryana High Court in the case of CIT vs. Market Committee, Sirsa [2012] 25 taxmann.com 384 (Punjab Haryana). In the above said case, the Hon ble High Court held that the provisions of section 44AB of the Act would not be applicable, when there was no income, which would fall under the head profits and gains of business or profession after claiming exemption u/s. 10 of the Act. Accordingly, Ld.AR prayed that the impugned penalty be deleted. 4. The Ld.DR, on the contrary, supported the orders passed by the Ld.CIT(A). 5. We heard the parties and perused the record. Admittedly, the only income earned by the assessee is dividend income and the same is claimed as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he substantial question of law as claimed by the revenue is answered against the revenue. The appeals are accordingly dismissed. 5.1. Identical view has been expressed by the Mumbai bench of Tribunal in the case of ACIT vs. India Magnum Fund (81 ITD 295), wherein it was held as under:- The heading of Chapter III is Incomes which do not form part of total income . It is therefore plain to us that provisions of sec. 44AB cannot and do not have any application in relation to incomes which are enumerated under Chapter III and are expressly excluded from total income. To reiterate, section 44AB is operational only when profits and gains of business or profession are to be computed for the purpose of computation of total income to meet the requir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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