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2011 (11) TMI 252 - HC - Income TaxTreatment of Share Application money as loans & Advances(269SS) - Penalty under 271D - Held That:- Share application monies received by a company, pending allotment of shares, do not amount to loan or deposit. Loan grants temporary use of money, or temporary accommodation, and that the essence of a deposit is that there must be a liability to return it to the party by whom or on whose behalf it has been made, on fulfillment of certain conditions. If these tests are applied to the facts of the case before us receipt of application money do not amount to loan or advance.
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