Assessing Officer levied the penalty on the ground that the assessee failed to discharge its burden in proving that there was a reasonable cause in accepting deposits from staff members. On appeal the Tribunal deleted the penalty . On appeal by the revenue High Court held that mere fact that deposits were directly received in bank account and refunds were also made in bank account of staff members, would not offer any mitigation under section 273B of the Act . Penalty was confirmed .(AY 2005-06)
CIT v. Al Ameen Educational Trust ( 2018 )254 Taxman 402 ( Ker ) (HC) Editorial : Al Ameen Educational Trust v. CIT ( 2021) 283 Taxman 285 (SC). SLP is dismissed as withdrawn as the assessee proposed to avail the benefit under the Direct Tax Vivad Se Vishaws Act 2020
S.269SS: Acceptance of loans and deposits -Penalty Failure to prove reasonable cause – Penalty order was affirmed – Order of Tribunal is reversed [ S. 271D, 273B ]