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2008 (6) TMI 321 - HC - Income TaxPenalty under section 271D on ground that loan in cash exceeding prescribed limit - The assessee had taken from seven persons a loan of Rs. 20,000 each. This is a finding of fact and not in dispute - Central Board of Direct Taxes vide Circular No. 572, dated August 3, 1990 has clarified that if loan or deposit are in excess of Rs. 20,000 it would attract section 271D - provisions of section 269SS are not applicable - Considering the circular issued by the Central Board of Direct Taxes and the loan being not in excess of Ps. 20,000 from each person and the interpretation given by the Tribunal to the said circular, the question of law does not arise – It is now well settled that circulars issued by Central Board of Direct Taxes are statutory in character and are binding on the Departmental authorities.
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