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2008 (2) TMI 516 - ITAT AHMEDABAD-BTaxability of receipts of forfeiture of share application money - Nature of receipt "Capital or Revenue" - CIT(A) held that the forfeiture of share application money capital receipt and not liable to tax - HELD THAT:- In the instant case no security deposit or advance received for performance of the contract was forfeited. In fact, the amount received was against issue of shares and issue of shares is not the business of the assessee. The same cannot be treated as receipt in the normal course of the business of the assessee which is engaged in financing and leasing business. Further, the assessee has also not credited the forfeited amount in its profit & loss account but in contradistinction to that it has credited the same in capital reserve account. Thus, in our considered opinion the decision of the Tribunal in the case of Prism Cement Ltd.[2006 (3) TMI 204 - ITAT BOMBAY-I] is more applicable which was rendered by the Tribunal after duly considering the aforesaid decision of the Hon'ble Supreme Court in the case of T.V. Sundaram Iyengar & Sons Ltd. [1996 (9) TMI 1 - SUPREME COURT]. Therefore, respectfully following the decision of the Mumbai Bench of the Tribunal we find no reason to interfere with the order of the learned CIT(A). It is confirmed and the ground of appeal of the revenue is dismissed. \In the result, the appeal of the Revenue is dismissed.
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