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2004 (8) TMI 66 - JHARKHAND HIGH COURT
"Whether the acceptance of share application money in cash amounting to Rs. 20,000 or more violates the provisions of section 269SS?" – Section 269SS was inserted with a view to prevent transactions in black money and to ensure that payments of Rs. 20,000 and above, are traceable to transactions through a bank. - Therefore, even if share application money cannot be considered as a loan within the meaning of section 269SS of the Act, we are of the view that it partakes of the character of a deposit, since it is repayable in specie on refusal to allot shares and is repayable if recalled by the applicant, before allotment of shares and the conclusion of the contract. - In this situation, we answer the question referred to us in the affirmative, in favour of the Revenue