2010 (6) TMI 831

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... initiating the proceedings for imposition of penalty for accepting the share application money Rs. 50,000/- in cash and the Ld. CIT(A) has erred in confirming the same. 2) That having regard to the facts and circumstances of the c se, Ld. Addl. CIT has erred in law and facts in imposing the penalty of Rs. 50,000/- for treating the share application money of Rs. 50,000/- as loan and the Ld. CIT(A) has erred in confirming the same. 3) That having regard to the facts and circumstances of the case, Ld. Addl. CIT has erred I law and facts in imposing the penalty of Rs. 50,000/- for violation of section 269SS of the I. T. Act, 1961 and the Ld. CIT(A) has erred in confirming the same. 4) That the Ld. CIT(A) has erred in....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e of Bhalotia Engineering Works vs CIT reported in 275 ITR 399 and imposed penalty of Rs. 50,000/- for this alleged violation of Section 269SS and this penalty was imposed u/s 271D. Being aggrieved, the assessee carried the matter in appeal before CIT(A) but without success and now the assessee is in further appeal before us. 3. It is submitted by the Ld. A.R. before us that admittedly, the judgement of Hon'ble Jharkhand High Court rendered in the case of Bhalotia Engineering Works (supra) is against the assessee but this is not the jurisdictional high court in the present case. It is also submitted that three other High Courts are in favour of the assessee and reliance was placed by him on the following judgements of various High Courts....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Bhalotia Engineering Works (supra). 6. We have considered the rival submissions, perused the material on record and have gone through the orders of authorities below and the judgements cited by both the sides. We finds that this is admitted position that the judgement of Hon'ble Jharkhand High court rendered in the case of Bhalotia Engineering Works (supra) is against the assessee on this very issue but Ld. A.R. for the assessee has cited three more judgements of various High Courts on this very issue which are in favour of the assessee:- - The first judgement is of Hon'ble Madras High Court rendered in the case of CIT Vs Rugmini Ram Ragav Spinners Pvt. Ltd.(supra) wherein it was held that there is no material or evidence relat....