https://www.taxtmi.com/caselaws?id=104480 Rupee payments to a local agent were held to fall within the exemption notification where the transaction was supported by foreign exchange proceeds and the factual record did not establish a true agency relationship with the overseas intermediary. On that basis, the payment did not contravene section 9(1)(d) of the Foreign Exchange Regulation Act, 1973. The commentary further notes that penalty under the Act is quasi-criminal and depends on a judicial assessment of relevant circumstances; even if a technical breach is assumed, the absence of mala fides and the venial nature of the default may make penalty inappropriate. The final result was that the contravention finding and penalty order could not stand. en-us Tue, 12 Mar 1996 00:00:00 +0530 Wed, 29 Feb 2012 12:32:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=104480 Rupee payments to a local agent were held to fall within the exemption notification where the transaction was supported by foreign exchange proceeds and the factual record did not establish a true agency relationship with the overseas intermediary. On that basis, the payment did not contravene section 9(1)(d) of the Foreign Exchange Regulation Act, 1973. The commentary further notes that penalty under the Act is quasi-criminal and depends on a judicial assessment of relevant circumstances; even if a technical breach is assumed, the absence of mala fides and the venial nature of the default may make penalty inappropriate. The final result was that the contravention finding and penalty order could not stand. Case-Laws Companies Law Tue, 12 Mar 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=104480