TMI Blog2016 (7) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 constitutin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee that the society was under bona fide belief that the amount received from its employee and members of the society do not constitute loan or deposit, which is required to be accepted by account payee cheque or draft, was not found acceptable by the AO. Accordingly, the AO while holding the assessee guilty of violation of provisions of Section 269SS and 269T, vide order dated 31.3.11, imposed the penalty upon the assessee of ₹ 13,00,580/- each under Section 271D and 271E of the Act. 3. Aggrieved thereby, an appeal preferred by the assessee was allowed by the CIT(A), observing that the AO has not given any finding whatsoever for rejecting the reply of the assessee. The CIT (A) arrived at the finding that there exists a reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate statute. 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. 8. It is to be noticed that the AO had not given any finding whatsoe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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