TaxTMI 
TaxTMI 
2010 (11) TMI 702
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....ibunal decided the aforesaid appeal along with cross-objection No. 12/Jab/99 filed by the assessee-company which were directed against the order of the Commissioner of Income-tax, Raipur, reducing the penalty under section 271D of the Income-tax Act from Rs. 13,15,540 to Rs. 67,540 for the said assessment year. The Tribunal dismissed both the appeal as well as cross-objections. 2. The brief facts of the case are as under : (a) The assessee-company has set up the factory in Cirgitti Industrial Area, District Bilaspur for manufacturing special smokeless fuel and soft coal, which is being used for domestic purpose. The production of the company started from November 1, 1992. The company filed return on December 27, 1993 decla....
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....said amount has been received in violation of the provisions of section 269SS of the Income-tax Act. However, the appellate authority categorically affirmed the finding of the Deputy Commissioner of Income-tax in respect of the remaining amount received in cash by the company and reduced the penalty to Rs. 67,540 vide order dated December 30, 1996 (annexure C). Against the reduction part of this order, the Revenue preferred an appeal before the Tribunal, by which the penalty was reduced to Rs. 67,540 holding that the part of the amount was received through banking channel and not cash payment. The assessee also filed cross-objection aggrieved by part rejection of his appeal to the extent indicated above. The Tribunal has held that the order....
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....oan or deposit, any loan or deposit taken or accepted earlier by such person from the depositor is remaining unpaid (whether repayment has fallen due or not), the amount or the aggregate amount remaining unpaid ; or (c) the amount or the aggregate amount referred to in clause (a) together with the amount or the aggregate amount referred to in clause (b), is twenty thousand rupees or more : Provided that the provisions of this section shall not apply to any loan or deposit taken or accepted from, or any loan or deposit taken or accepted by,- (a) Government ; (b) any banking company, post office savings bank or co-operative bank ; (c) ....
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.... (Acceptance of Deposits) Rules, 1975, exempts any amounts received from a person who at the time of the receipt of the amount was a director of the company, or any amount received from its shareholders, by a private company, or by a private company which has become a public company. Rule 2(b)(ix) of the Rules, 1975, is relevant here and quoted below : "2. Definitions.- . . . (a) 'Act' means the Companies Act, 1956 (1of 1956) ; (b) 'deposit' means any deposit of money with, and includes any amount borrowed by, a company, but does not include- . . . (ix) any amount received from a person who, at the time of the receipt of the amount, was a director of the company or any amount received from its shareholders, by a private....