2017 (7) TMI 104

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..... s are looked after by Accountant. The accountant of the assessee is not qualified person. The assessee was under bonafide belief that accounts are not required to be issued u/s 44AB of the Act. The assessee specifically pleaded in the reply that the Guidance note, ‘Note of Tax Audit u/s 44AB’ issued by ICAI that, if the turnover of Future & Option defined as aggregate of favorable and unfavorable transaction exceed ₹ 40,00,000/- than the assessee is liable to get his account audited. As per our view the assessee has sufficiently explained the circumstances, as per the provisions of section 273B of the Income-tax Act. Considering the reply of the assessee the penalty levied by assessing officer under section 271B is deleted. Appeal of .....

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..... tute of Chartered Accountants (ICAI), if turnover of Future Options defined as aggregate of favorable and unfavorable transaction exceed ₹ 40,00,000/-, then only the assessee is liable to get his account audited. The assessee further contended that he is a Sr. Citizen and earning income from Future Option activities managed by his broker. His accounts are maintained by a person who is not a qualified accountant and is unaware of I.T. Provisions. The assessee was under bonafide belief that his accounts are not required to get audited u/s 44AB. The contention of assessee was not accepted by AO holding that the Guidance note of ICAI relied by assessee is not mentioned anywhere in the Income-tax Act. Though, the definition of turnov .....

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..... contention of ld. DR for the Revenue and further gone through the orders of authorities below. In reply to the show-cause notice for levy of penalty u/s 271B, the assessee has taken the plea that he is a Sr. Citizen, his accounts are looked after by Accountant, who is not qualified person, he was under bonafide belief that accounts are not required to be issued u/s 44AB of the Act. It was further contended that Guidance Note of Tax Audit u/s 44AB issued by ICAI that if the turnover of Future Option defined as aggregate of favorable and unfavorable transaction exceed ₹ 40,00,000/- than the assessee is liable to get his account audited. The contention of assessee was not accepted by AO holding that the Guidance Note of ICAI on Fut .....

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