1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.2358 OF 2009 The Commissioner of Income Tax ..Appellant. V/s. Annasaheb Nale Nagari Sah. Pat Sanstha ..Respondent. Mr. Vimal Gupta for appellant. None for respondent. CORAM : DR. D.Y.CHANDRACHUD AND J.P.DEVADHAR, JJ. DATED : 4TH FEBRUARY, 2010 P.C. :- 1. The issue in the appeal relates to the confirmation, by the ITAT, of the order of the CIT (A) deleting a penalty imposed under section 217D of the Income Tax Act, 1961. The circumstances in which the CIT(A) ordered deletion of the penalty are set out in para 3.11 of his order. The CIT(A) noted that the assessee is a co-operative society engaged in the activity of extending financial help to its members who are mostly agriculturists and belonging to the low income group. The deposits were accepted mostly from agriculturists and persons belonging to a low income group under the bonafide belief that the provisions of the Act did not have any application to the income of the society was exempted under section 80P of the Income Tax Act, 1961. The auditors did not make any adverse comments about the violation of the provisions of section 269SS. The appellant has been 2 accepting such deposits since inception which practice was stopped from April, 2006 when the provisions of section 269SS were brought to its notice. The Tribunal has noted the circumstances and the facts found in the order of the CIT (A) and considered it appropriate to confirm the order of the CIT(A) of not imposing a penalty. We do not find that any substantial question of law arises in the appeal. The view taken is a possible view. The appeal is dismissed. (J.P.DEVADHAR, J.) (DR. D.Y.CHANDRACHUD, J.)