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TMI Blog2020 (2) TMI 945X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee 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. Statutory Notice u/s 143(2) and 142(1) of the Act with questionnaire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Income Tax Act, 1961 does not prescribe any different definition of turnover for above mentioned tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counts 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 turnover is less than the one prescribed u/s 44AB of the Act the assessee is not required to get the book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sclosed 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 were maintained by him and since he incurred the loss during the year, the share transactions were not disclosed. When the matter came ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 12. We accordingly in the given facts and circumstances of the case set aside all the issues raised in this appeal to Ld. A.O, to carry out necessary verification with the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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