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2020 (2) TMI 1629 - AT - Income TaxLevy of penalty u/s.271B - turnover of the assessee required the assessee to get his accounts audited as provided u/s.44AB - assessee is an individual who was doing Speculative Transactions in Derivatives and Securities Transactions - HELD THAT:- In the present case, it is clear from the assessment order which shows that the assessment was selected for limited scrutiny to verify the derivatives, (Futures Transactions and Securities Transactions). The assessee has disclosed the loss against the Futures and Options as a speculative loss. However, the Assessing Officer treated the same as a business transaction. A perusal of the decision in the case of Banwari Sitaram Pasari [HUF] [2013 (1) TMI 234 - ITAT PUNE] has held that when no physical delivery is taken or given, the transaction of buying and selling of commodities is to be considered as speculative transaction and consequently there is no turnover constituted for the purpose of the assessee to get his accounts audited u/s.44AB. As the facts in this assessee’s case are identical it is held that the assessee’s accounts is not liable for audit u/s.44AB. Consequently, the penalty levied u/s.271B of the Income Tax Act, 1961 as levied by the Assessing Officer and as confirmed by the learned Commissioner of Income Tax (Appeals) stands deleted. - Decided in favour of assessee.
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