2014 (12) TMI 392

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....ed under Section 271D of the Income Tax Act?" 2. The assessment in this case relates to the assessment years 2001-02 and 2002-03. The assessee company during the assessment years in question had accepted the share application money in cash from various persons. The Assessing Officer was of the view that the money received as share application was of the nature of the deposit in the hands of the company. Hence, a show cause notice was issued on the ground that the assessee had violated the provisions of Section 269 SS by accepting the share application money instead of account payee cheque or account payee draft.  In response to the show cause notice issued, the assessee filed objections. Taking into account the objections filed by t....

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.... hereby deleted in its entirety." 3. Aggrieved by the order of the Commissioner of Income Tax (Appeals), the Revenue has filed appeals before the Income Tax Appellate Tribunal. The Tribunal after hearing both the parties, dismissed the appeals, following the decision of this Court cited supra, holding as follows: "5. In this context, it has been considered by the CIT(A) in CIT vs. Rugmini Ram Raghav Spinners Ltd., 304 ITR 417. The Hon'ble jurisdictional Madras High Court held in this case (304 ITR 417) that share application money is neither deposit nor loan and therefore, provisions under section 269-SS and section 269-T have no application and consequently, there can not be penalties under section 271-D and section 271-E. In vie....