Penalty for not disclosing loss in ITR

notice under which section ?

Dear Guest, 

First of all you are more concern about section of notice. so you can get notice u/s 142 (1)  or 143 (2). 

Earning profit or loss is not a decisive factor whether return or audit report should be file or not. if your total trading cross the threshold limit of audit i.e. 1Cr in a year. you must have to audited your books of accounts.