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2017 (3) TMI 1310 - AT - Income TaxWaiver of penalty u/s 273B - Levy of penalty u/s. 271D - violating the provisions of section 269SS - Assessee is a Co-operative credit society and has accepted cash deposits from its members exceeding ₹ 20,000/- in single transaction - Held that:- It was a widespread, even if erroneous, belief that the provisions of Section 269 SS do not apply to the credit cooperative societies, and it is also evident from the fact that even the CBDT has taken notice of imposition of resultant penalties in large number of cases, and issued a circular highlighting that these penalties should not be imposed indiscriminately and without considering the scheme of Section 273 B. Such a widespread belief, by itself, can be viewed as a reasonable cause for assessee's bonafide belief. Having said that, we may also add that it is not a case where even after the assessee after having come ' to know of the correct legal position due to income tax department's action against him continues to follow the same practice. Once the assessee comes to know as to what is the correct legal position or at least the revenue's stand on that issue, there is no question of his having bonafide but incorrect belief about the legal position. That is a different situation and we are not at all concerned with such a situation in the present case. This decision cannot have any precedence value in such a situation. In view of the totality of the facts and explanation offered, we are of the considered view that the assessee has been able to show reasonable cause for inadvertent violation of provisions of section 269SS of the Act. Accordingly, the impugned order is set aside and the appeal of the assessee is allowed.
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