Income tax demand for cash deposit

During the FY 17-18, the assessee have deposited a cash of 1.9cr in the current account, but return was not filed as it was the 1st year of business. Later the returns were regular. Now the IT dept has issued the notice for not filing the return. If we consider the entire amount as business income, should the tax audit report has to be filed as the turnover exceeds 1cr for that year?