TaxTMI 
TaxTMI 
2020 (2) TMI 945
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....16 framed by ITO -1(2), Indore. 2. The assessee has raised following grounds of appeal; 1. That on the facts and in the circumstances of the case and in law the learned CIT(A) erred in confirming the penalty under section 271B of the Act. The appellant prays that the said penalty be deleted 2. The appellant craves leave to add, to alter, amend, modify, substitute, delete and or rescind all or any of the grounds of appeal on or before final hearing, if necessary so arises. 3. Brief facts relating to this issue are that the assessee is engaged in the business of trading of shares. The return for Assessment Year 2014-15 filed on 10.11.2014 declaring income of Rs. 45,320/-. Case selected for scrutiny under CASS. Statutor....
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....he amount-of turnover from the ledgers of HDFC and India Bulls which is reproduced hereunder:- 1. HDFC Rs. 1,42,19,000/- 2. HDFC Rs. 46,77,743/- 3. India Bulls Rs. 9,98,59,738/- 4. India Bulls Rs. 11,15,85,389/- Total Rs. 23,03,41,870/- 3.1 It is clear from the above that the appellant had a turnover of more than Rs. 23.03 crores and was required to maintain and get the books of account audited u/ s 44AB of the Income Tax Act, 1961. However, during the course of assessment proceedings, the appellant had mainly contended that turnover in the cases of delivery based sales, future options and intraday transactions are supposed to be different from normal business turnover. But, The I....
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....ing to the guidance notes on Tax Audit under Section 44AB of the Act issued by Institute of Chartered Accounts of India (In short 'ICAI') contending that the turnover for the purpose of audit u/s 44AB of the Act with relation to future option and intra day transactions is not the value of shares because there is no delivery of shares and only the net difference of the transaction either debit or credit in total is to be taken as the basis to compute the turnover of the assessee. He further submitted that the turnover is not defined in the Act and meaning is to be borrowed from the definition provided in the provisions of sale of goods Act u/s 6(3) of the said Act. It was further submitted by the Ld. Counsel for the assessee that since the t....
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....f Rs. 45,316/- declared. There is no mention about any business income earned or loss suffered during the year. Assessee did not disclosed the share business in income tax return. It was only on the basis of information brought to the notice of A.O that the assessee's case was selected for scrutiny. Information related to transactions carried out by the assessee relating to delivery based purchase and sales of shares, future options and intraday transactions carried out through HDFC & India Bulls. In the assessment order A.O has referred to the books of accounts maintained by the assessee which have been examined on test check basis and turnover is computed at Rs. 22,52,74,187/-. However the assessee has stated that no books of accounts wer....
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....turnover is not coming to the logical end from the material available on record to examine the justification of levy of penalty u/s 271B of the Act will be little early. In the assessment order Ld. A.O has not given correct finding and is mentioning about the books of accounts which the assessee has never maintained. The judgment referred and relied by the assessee will not help at this stage. Once the turnover as stated by the Ld. Counsel for the assessee is verified at the end of the Ld. A.O which is to be calculated on the basis of Guidance note issued by 'ICAI' for tax audit u/s 44AB of the Act, the question that whether the assessee was liable to get books of accounts audited u/s 44AB of the Act needs to be taken by Ld. A.O thereafter.....