Assessee is a mutual benefit company doing business of mobilization of deposits from members/shareholders. Tribunal deleted penalty imposed on assessee under sections 271D and 271E after considering assessee’s business realities, difficulties in mobilizing deposits from people of small incomes, agriculturists and rural dwellers. Order of Tribunal was affirmed by High Court. Order of High Court is affirmed. (AY.1992-93, 1993-94, 1996-97, 1999-2000, 2000-01)
CIT v. Sahara India Mutual Benefit Co. Ltd. (2023) 456 ITR 782 / 294 Taxman 429 //(2024) 337 CTR 377((SC) Editorial : CIT v. Sahara India Mutual Benefit Co. Ltd (2012) 28 taxmann.com 119 / 212 Taxman 97 (Mag.)/ (2013) 83 DTR 171 / 257 CTR 225 (Delhi)(HC)
S. 271D : Penalty-Takes or accepts any loan or deposit-Mobilizing deposits from people of small incomes, agriculturists and rural dwellers-Order of High Court deleting the penalty is affirmed. [S. 269SS, 269T, 271E, 273B]