Let me explain by giving Exm.. Let say x ltd sold some goods to Y ltd amounting to INR 4 Lakhs. Y ltds pays 1.50 Lakhs via RTGS and for balance 2.5 Lakhs Y ltd deposit cash amounting to INR 2.5 Lakhs in bank account of Xltd. Now can AO content that, since Section 269ST allows Account payee check, bank draft or other mode via banking channels which does not include cash deposit directly into bank, this transaction is in violation of section 269 ST and can impose penalty on X ltd. Kindly provide your answer along with proper reference…
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violation of Section 269ST