2014 (7) TMI 915

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.... under section 271(D) / 271(E) of the Income Tax Act, should not be imposed in case of society for the quantum of amount accepted or repaid in contravention of Sections 269-SS and 269-T of the Income Tax Act. 2. It is the case on behalf of the petitioner and so stated in the petition, more particularly in paragraph Nos.3 and 4 that, as such there is no breach of Sections 269-SS and 269-T of the Income Tax Act, as alleged. It is also the case on behalf of the petitioner that with respect to the activities and for the transaction in question, Sections 269-SS and 269-T of the Income Tax Act would not be applicable at all. In paragraph Nos.3 and 4 of the petition, the petitioner has stated as under :- "3. The issue involved in the petitio....

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....ntries and vouchers alone. A copy of one such set of documents in respect of a member Piyushbhai Naranbhai is collectively annexed herewith and marked at Annexure-B." 2.1 It is also the case on behalf of the petitioner that the transaction enumerated at Sr.Nos.1 to 32 of the list with the notice dated 20/9/2002 are in respect of the amount of the sale proceeds of the cotton deposited by the respective member and withdrawal thereof at the member's convenience and cannot be treated as loans at all and the transactions listed at Sr.Nos.33 to 47 of the said list are in respect of renewal of deposits which had matured on 19/8/1998 and cannot be treated as loan and do not involve receipt or payment of cash in any case warranting penalty procee....

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.... before the appropriate authority and file detailed reply. 4. Heard the learned advocates appearing on behalf of the respective parties at length. 4.1 At the outset, it is required to be noted that present petition is against Show Cause Notices issued by the appropriate authority - Joint Commissioner of Income Tax, Bharuch Range, Bharuch by which the petitioner has been called upon to show cause as to why penalty under section 271(D) / 271(E) of the Income Tax Act, should not be imposed in case of assessee society for the quantum of amount accepted or repaid in contravention of Sections 269-SS and 269-T of the Income Tax Act. Therefore, as such ample opportunity will be given to the petitioner to submit its case. Whatever is stated in....