Violation of the provisions of Sections 269SS and 269T - scope ...
Share Application Funds Not Considered Loans or Deposits; No Penalties u/ss 271D and 271E Apply.
May 16, 2024
Case Laws Income Tax HC
Violation of the provisions of Sections 269SS and 269T - scope of the term "loan" and "deposit" - Penalty u/s 271D and 271E - amount received on account of share application money and repayment - The High court observed that share application money is for participation in the capital of the company and is neither repayable after notice nor after a period. - The High court ruled that share application money does not constitute a loan or deposit as defined in the Act. Hence, the provisions of Sections 269SS and 269T do not apply, and no penalties under Sections 271D and 271E can be imposed.
View Source