Tax Audit u/s 44AB is require if the Assessee has done Intraday-(Speculative) transaction

[Haresh Raithatha]

Dear Freinds

One of my client (who is an Employment in MNC) has carried out Share market transaction and his turn over intra day for the Finacial year 13-14 in equity market Was ₹ 15.50 crore and Net result of the Transaction is ₹ 1.50 lac Profit. Is he liable to get his account audited u/s 44AB...Assessing officee is insisting to impose penalty U/S 271 B...

Please advise and give some relevant case laws....

Regards

Haresh

AI Summary

Is audit necessary under Section 44AB for intraday share transactions? Assessing officer considers penalty under Section 271B. An individual employed at a multinational company engaged in intraday share market transactions, resulting in a turnover of 15.50 crore and a profit of 1.50 lakh for the financial year 2013-14. The query concerns whether this individual is required to have their accounts audited under Section 44AB of the Income Tax Act, as the assessing officer is considering imposing a penalty under Section 271B. A response highlights that the requirement for an audit depends on whether speculation in shares is considered a business or professional activity.