Difference in Non-Delivery Derivative Transactions to be taken for Turnover determination for Tax Audit

Parag Jain Vs ITO (ITAT Delhi) In an appeal filed by Parag Jain against the ITO, the Income Tax Appellate Tribunal (ITAT) Delhi has ruled that only the difference in non-delivery derivative transactions should be taken into account when determining turnover for a tax audit under Section 44AB of the Income Tax Act. The case revolved around the imposition of a penalty under Section 271B of the Act. The tribunal agreed with the argument made by the assessee’s counsel, which referred to the ICAI’s Guidance Note on Tax Audit under Section 44AB. According to this note, only the resultant...