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| The Tax Publishers2020 TaxPub(DT) 4240 (Del-HC) INCOME TAX ACT, 1961
Section 271D Section 269SS
Where assessee-non-banking finance company, engaged services of an agent to mobilize deposits and on allegation that assessee obtained substantial deposits in cash in violation of section 269SS, AO imposed penalty under section 271D upon assessee, considering that depositors came predominantly from rural areas where there were either no proper banking facilities or such facilities were inadequate, imposition of penalty was not justified.
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Penalty under section 271D - Violation of section 269SS - Depositors came predominantly from rural areas where there were either no proper banking facilities -
Assessee was a non-banking finance company and it engaged services of an agent to mobilize deposits. AO alleged that assessee obtained substantial deposits in cash in violation of section 269SS and imposed penalty under section 271D upon assessee. Held: Following CIT v. Sahara India Financial Corpn. Ltd. (2012) 26 taxmann.com 269:211 Taxman 192 (Mag.), which pertained to assessment years 1990-91, 1999-2000, 2000-2001 and 2001-2002, instant appeal, which pertained to assessment year 2009-10 stood dismissed. It was held in above case that depositors came predominantly from rural areas where there were either no proper banking facilities or such facilities were inadequate and violation of section 269SS was not material.
Followed:CIT v. Sahara India Financial Corpn. Ltd. (2012) 26 Taxmann.com 269/211 Taxman 192 (Mag.).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 1990-91 to 2001-2002,
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