S. 241(1)(c) Penalty cannot be imposed for merely for Rejection of Registration by RBI

Farrukhabad Investment (India) Ltd Vs DCIT (ITAT Agra Third Member)

The Id. DR cited several reasons, which, in his opinion, justified imposition of penalty, such as,. the RBI rejecting the application for registration of NBFC; names and addresses of the depositors not available; no books of account or vouchers available; a qualification by the auditors of the company; payment of interest not ascertainable; no  deduction of tax at source. These facts, in the opinion of the Id. DR, 

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