https://www.taxtmi.com/caselaws?id=772144 ITAT Chandigarh held that penalty under Section 271D was not leviable on cash received as share application money from directors/shareholders. The assessee, a public limited company operating hotels with listed shares, received cash deposits during FY 2011-12 as share application money. Following Punjab & Haryana HC precedent in Eqbal Inn Hotels Ltd, the tribunal ruled that share application money does not constitute loans or deposits under Section 269SS. Despite pending SEBI disputes and Company Law Board directions keeping share allotment in abeyance, the amount remained classified as share application money. The tribunal confirmed CIT(A)'s deletion of penalty, rejecting revenue's reclassification attempt. Appeal allowed. en-us Tue, 01 Oct 2024 00:00:00 +0530 Wed, 04 Jun 2025 12:09:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=772144 ITAT Chandigarh held that penalty under Section 271D was not leviable on cash received as share application money from directors/shareholders. The assessee, a public limited company operating hotels with listed shares, received cash deposits during FY 2011-12 as share application money. Following Punjab & Haryana HC precedent in Eqbal Inn Hotels Ltd, the tribunal ruled that share application money does not constitute loans or deposits under Section 269SS. Despite pending SEBI disputes and Company Law Board directions keeping share allotment in abeyance, the amount remained classified as share application money. The tribunal confirmed CIT(A)'s deletion of penalty, rejecting revenue's reclassification attempt. Appeal allowed. Case-Laws Income Tax Tue, 01 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=772144