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2016 (7) TMI 208 - HC - Income TaxPenalty u/s 271D and 271E - assessee has accepted the deposits from its employee and members in cash, in violation of provisions of Section 269SS and 269T - ITAT deleted the penalty - Held that:- All the members are agriculturists and having income from the agricultural activities. It has come on record that the members of the society mostly reside in village, which do not have any banking facility. The specific stand of the assessee before the AO was that amount was received from the employee and members of the society on account of urgent need as amanat rashi and no loan deposit was received by the society from any outsider. Precisely, the stand of the assessee was that it was under bona fide belief that amanat rashi received from its members do not constitute loan or deposit, which is required to be accepted by account payee cheque or draft. It is to be noticed that the AO had not given any finding whatsoever for rejecting the stand taken by the assessee, however, the CIT (A) and ITAT have concurrently found that the assessee, a cooperative society, working in remote area, ignorant about the relevant provisions, accepted the funds received as amanat rashi under the bona fide belief that the same do not constitute deposit or loan. The CIT (A) and ITAT have found the explanation furnished by the assessee in detail, as constituting reasonable cause in terms of provisions of Section 273B of the Act and thus, the finding arrived at by the CIT (A), affirmed by the ITAT, after due consideration of all the relevant aspects of the matter regarding the reasonable cause for failure on the part of assessee in complying with the provisions of Section 269SS and 269T, cannot be said to be capricious or perverse. No substantial question of law arises - Decided against revenue
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