Applicability of section 269T of the Income-tax Act, 1961, to amounts kept by agriculturists, out of sale proceeds with commission agents--Clarification regarding

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..... cular No. 556 Dated 23/2/1990 Section 269T of the Income-tax Act provides that no company, co-operative society or firm shall repay to any person any deposit otherwise than by any account payee cheque or account payee bank draft where the amount of deposit and interest thereon, if any, is Rs.10,000 or more. 2. The Direct Tax Laws (Amendment) Act, 1987, has amended the definition of "depos .....

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..... ds belonging to an agriculturist, the sale proceeds thereof which remain with him cannot be regarded as a deposit made by the agriculturist with the "Kachcha Arhatiya". Further, where the "Kachcha Arhatiya" remits only a part of the sale proceeds to the agriculturist, the unremitted part of the sale proceeds would also not assume the character of a deposit. Therefore, the repayment of such sale pr .....

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