Failed to file Tax Audit report

My friend running a business and having a Turnover of 1.8 cr in the FY 2018-19. While filing ITR he mentioned "NO" in the Tax Audit field in the ITR and also he didn't filed Tax Audit report. Now he received a notice from depart to disclose the Tax Audit details.
Now what are the consequences he has to face and how to get rid of this issue.
Please help me my dear professional friends
Replies (6)
Quick Summary
A business owner with a turnover of £1.8 crore for FY 2018-19 incorrectly indicated 'No' for tax audit in their ITR and failed to file the report. They've received a notice and are seeking advice on consequences and solutions. Professionals suggest consulting a CA to determine if an audit was mandatory and to explore options like filing a revised return before the September 30th deadline to potentially avoid penalties under Section 271B, which could be 0.5% of turnover or £150,000, whichever is less.

I think itr should be reversed and tax audit must do
Get advice from a CA as he would check whether liable for audit or no. And any other suitable way.
If you have not audited your books of account or failed to furnish audit report i.e. not complying with 44ab of IT Act. for it penalty u/s 271b will be levied, which is 1/2% of turnover or 150000, whichever is lower.
If your Turnover is 1.8 Cr in F.Y 2018-19 than Generally you are required to get your books of Account audited under 44AB of Income tax Act, 1961.

If any person falls under the section & fails to get audited of his account before the due date, then they will be liable for a penalty of 0.5% of the turnover or the gross receipts up to a maximum penalty of Rs. 1, 50,000.

Last date to revised return of F.Y 2018-19 is 30th September, 2020

Before filing revised return or doing tax audit first consult your CA, that there was any reason for not doing Audit or selecting"NO" in ITR..&than only proceed further.
Thank you all for your valuable suggestions.
Most welcome............

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