TMI Blog2006 (1) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... y with section 269SS - - - - - Dated:- 30-1-2006 - Judge(s) : P. D. DINAKARAN., P. P. S. JANARTHANA RAJA. JUDGMENT The judgment of the court was delivered by P.D. Dinakaran J.-The appeals are directed against the order dated June 5, 2003 made in I.T.A. Nos. 999, 1000, 1001 and 1002/Mds/2000 for the assessment years 1996-97, 1997-98, 1998-99 and 1999-2000. The brief facts of the case are stated as under: The assessee is a partnership firm engaged in the business of chit and finance. During the survey, it was found that the assessee had accepted cash deposits of more than Rs. 20,000 in contravention of section 269SS of the Act. Hence, after giving an opportunity pursuant to the show cause notice, the Joint Commissioner imposed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be rejected on the only ground that they had not been paid by way of cheque as contemplated under section 269SS of the Act. On the other hand, it was not the case of the Department that banking facilities are available within the jurisdiction of the assessee's business place, viz., Kundrathur, and the depositors were operating bank accounts. Under such circumstances, both the Commissioner and the Tribunal, exercising the discretion conferred under section 273B of the Act came to the conclusion that the transactions were found to be genuine and bona fide, and that the depositors did not have bank accounts and, therefore, the assessee was in no position to request them to make the deposits by cheque, assuming the same was in contravention of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transactions are bona fide on material facts, viz., (i) there is no banking facility within the business jurisdiction of the assessee, viz., Kundrathur; and (ii) it is not the case of the Revenue that there is any banking facility nearby and the depositors are operating the funds through banks, but the authorities have come to the conclusion that the transactions are genuine and bona fide. Therefore, it may not be proper for this court to interfere with such discretion exercised by the authorities below, having been satisfied with the reasonable cause for the failure to comply with section 269SS of the Act. We are, therefore, of the view that there is no error or illegality in the order of the Tribunal and, therefore, no interferenc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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