TaxTMI 
TaxTMI 
2015 (1) TMI 1222
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....d share application money of Rs. 7,80,000/- in cash from 18 share holders at Rs. 40,000/- per persons and Rs. 30,000/- each from 2 persons on 10th August 2007. The Addl CIT held that there is violation of section 269SS of the Act, as assessee has received share application money in cash amounting to Rs. 20,000/- or more. The ld CIT(A) has deleted the penalty following the judgment of jurisdictional High Court in the case of CIT Vs. I.P. India Pvt. Ltd. In ITA No.1192/2011. The ld CIT(A) has held in para 4.2 to 4.5 as under:- "4.2 On identical issue Hon'ble Jurisdictional Delhi High in the case of CIT vs. IP India Pvt. Ltd. in ITA No. 1192/2011 in its decision dt. 21/11/2011 after considering the decision of Hon'ble Jharkhand High cour....
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....consideration of the matter, we find that the AO has relied on the judgment of the Jharkhand High Court (supra) and referred the issue of levying penalty to the Additional CIT. He did not examine whether the share application monies can be treated as "loan" or "deposit" within the meaning of Section 269SS. The Additional CIT has merely endorsed the view of the AO in passing the penalty order. The CIT(A) has found as a fact that the shares were subsequently allotted to the applicant- companies as shown by the form filed before the Registrar of Companies. Neither the AO nor the Additional CIT has taken the trouble to examine this aspect while imposing the penalty. They have merely relied on the judgment of the Jharkhand High Court (supra). Th....
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....accordingly of the view that no substantial question of law arises from the order of the Tribunal. We decline to admit the appeal. The same is dismissed with no order as to costs". The above decision of Hon'ble jurisdictional High Court is squarely applicable in the instant appeal. There is no dispute that the above moneys of Rs. 7,80,000/- were received as share application moneys from the 20 persons and shares were also subsequently allotted to them on 31/08/07 and 31/07/08 which was also recorded by the Addl. CIT in para 5.3 of her order. 4.3 Regarding the issue of share applications dt.10/08/07 and dt. 10/01/2008, there is no dispute that out of the above sum of Rs. 7,80,000/- amount of Rs. 4,80,000/- were received as share ap....