Penalty for not getting accounts audited not leviable for bona fide reliance on ICAI ‘Note on Tax Audit U/s.44AB’

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 bona fide belief that accounts are not required to be issued under section 44AB of the Act. The assessee specifically pleaded in the reply that the Guidance note, ‘Note of Tax Audit under section 44AB’ issued by ICAI that, if the turnover of Future & Option defined as aggregate of favorable and unfavorable transaction exceed Rs. 40,00,000 than the assess...