Finance companies too governed by provisions of section 269SS and 269T of the Income Tax Act, 1961

RELEVANT PARAGRAPH 15. In the instant case, the promoters of the company though technically qualified and experienced are new to the business. For a finance company, money is the working capital. The assessee company has to maintain its integrity and good will to mobilize deposits. In view of the competition in business the assessee company resorted to innovative method of collecting deposits i.e. collecting the deposits at the door steps of the customer. Most of the deposits were collected from women and agriculturists who were not having bank accounts. When the agents collected the deposits ...