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2017 (7) TMI 104 - ITAT MUMBAIPenalty levied u/s 271B - trading in derivatives transaction - whether the assessee is not liable to get the books of accounts audited u/s 44AB? - bonafide belief - Held that:- The assessee being a Sr. Citizen and engaged in the business of derivative, Future & Option with a tremendous courage and dynamism and on the other hand, he is taking such excuse which is not acceptable. We have seen that the order of ld. CIT (A) is reasoned one and does not suffer from any infirmity or illegality, which requires our interference. In reply to the show-cause notice for initiation of penalty, the assessee has replied that he is a Sr. Citizen; his accounts 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 the assessee is allowed.
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