https://www.taxtmi.com/caselaws?id=458090 Receipt of share application money from non-resident investors did not, without proof of share allotment or any written or implied admission of liability, amount to an acknowledgement of debt under section 9(1)(c) of the Foreign Exchange Regulation Act, 1973. The tribunal treated acknowledgement as requiring a subsisting debtor-creditor relationship, and held that mere receipt of funds as share capital was insufficient to convert the amount into an acknowledged debt. As no material showed that the recipients admitted any liability to the non-residents, the alleged contravention was not established and the penalty order could not be sustained. en-us Mon, 10 Apr 2023 00:00:00 +0530 Mon, 07 Oct 2024 13:06:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=458090 Receipt of share application money from non-resident investors did not, without proof of share allotment or any written or implied admission of liability, amount to an acknowledgement of debt under section 9(1)(c) of the Foreign Exchange Regulation Act, 1973. The tribunal treated acknowledgement as requiring a subsisting debtor-creditor relationship, and held that mere receipt of funds as share capital was insufficient to convert the amount into an acknowledged debt. As no material showed that the recipients admitted any liability to the non-residents, the alleged contravention was not established and the penalty order could not be sustained. Case-Laws FEMA Mon, 10 Apr 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=458090