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2020 (3) TMI 136 - AT - Income TaxPenalty u/s 271B - Provisions of section 44AB - when the assessee has done the share trading in intraday segment and some of the transactions are delivery based transactions - HELD THAT:- There is no dispute regarding the delivery based transactions of shares to the tune of ₹ 53,498.90. We have verified the computation of the turnover in respect of intraday non-delivery based transactions and the positive and negative differences of these speculative transactions given in the above table. Therefore, by taking the aggregate of the positive and negative differences as well as the turnover of the delivery based transactions, the total turnover of the assessee comes to ₹ 3,15,280.69. Hence, when the turnover of the assessee is less than the threshold limit provided under section 44AB, then the assessee is not required to get its books of account audited in terms of section 44AB of the IT Act and consequently the penalty provision of section 271B is not attracted. Even otherwise, when this issue of ‘turnover’ is a debatable issue and the assessee has claimed this turnover as ₹ 3,15,280.69 if computed in terms of the Guidance Note of ICAI, then the said explanation of the assessee would be regarded as reasonable and bonafide as per the provisions of section 273B and consequently no penalty under section 271B is leviable. Accordingly, the penalty levied under section 271B is deleted. - Decided in favour of assessee.
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