TMI Blog2007 (5) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... in the business and profession which object is running the purpose of profit and gain - section 271B is to apply only if activity of the assessee, nature of income to be assessed under Chapter IV, Head D, which categorically prescribed for the nature of income falling only if under the profit and gains from business or profession - Decided that it does not come under the purview of section 44AB - not getting the accounts audited and in not filing the audit report by a specified date, the penal provisions under section 271B are not attracted in this case merely because the assessee has itself been showing its income/loss under the head 'Income from business' inadvertently - Held against the favour of revenue - Appeal dismissed. - ITA 3909 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following identical reply was furnished by the assessee : "The Indian Hockey Federation is a society registered under the Societies Registration Act, 1860. The society is registered with an object of not to derive either directly or indirectly any kind of benefit, profit, gain from any activity of business and profession. The audit of the Indian Hockey Federation for the financial year 2003-04, the assessment 2004-05 was made by qualified accountants as per the Income-tax Act, 1961, as required under the provisions of the Societies Registration Act, 1860. The audit report is enclosed with the return filed being acknowledgement No. 3121008197 dated March 31, 2005 (acknowledgement No. 3121007451 dated March 17, 2004 for the assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fact that the assessee is the society working for the promotion of national game and not engaged in any kind of business includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture. The Federation has also been granted registration under section 12A of the Income-tax Act, 1961 and registration number of the Federation is letter No. Director of Income-tax (Exemptions)/260/89-90 dated December 12, 1989. The copy of the same is enclosed as (annexure-2). The learned Assessing Officer was under the bona fide belief that the only showing in return of income in the column of the business and profession is conclusive evidence to impose the penalty under section 271B and ignore all th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s major source of income was only grants from the Government of India. It was thus emphasised that there was no question of deriving profit or gains from the activities of the Federation. 7. The learned Commissioner of Income-tax (Appeals) after considering the pleas raised on behalf of the assessee cancelled the penalty for both years by observing as under : "The submissions of the authorised representative have been examined. It is seen that the Indian Hockey Federation is not carrying out any business or profession, therefore, does not come under the purview of section 44AB. However, in any case keeping in view the reply of the appellant and the nature of the Federation, the default, if any, in not getting the accounts audited and in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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