Two firms but audit of the second was not conducted , will he be liable to penalty u/s 271B?

[CHAMAN BANTHIA]

during assessment proceedings the second firm's profit was calculated as per sec 44AD.

AI Summary

Clarification sought on Section 271B penalty applicability for second firm audited under Section 44AD of Income Tax Act. A query was raised regarding whether a penalty under Section 271B would apply if an audit was not conducted for a second firm, despite two firms being involved. During the assessment proceedings, the profit of the second firm was calculated according to Section 44AD of the Income Tax Act.