ITAT cancels Rs 25,000 penalty on MCX trader

What happened: ITAT Jaipur cancelled a Rs 25,000 penalty on MCX trader Narwani, finding the Section 271A penalty rested on an original assessment order that had been set aside, while the fresh assessment recorded no Section 44AA default. Key numbers: Turnover Rs 4.29 crore; ITR declared Rs 3.42 lakh income; original Why it matters: CA Suresh Surana said the ruling should not be read as a general exemption from maintaining books of account, and the Tribunal left open whether Narwani was required to do so. He said traders should keep broker contract notes, ledgers and transaction reports.

ITAT Jaipur cancelled a Rs 25,000 penalty on MCX trader Narwani, finding the Section 271A penalty rested on an original assessment order that had been set aside, while the fresh assessment recorded no Section 44AA default.

CA Suresh Surana said the ruling should not be read as a general exemption from maintaining books of account, and the Tribunal left open whether Narwani was required to do so. He said traders should keep broker contract notes, ledgers and transaction reports.