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2014 (2) TMI 1063 - AT - Income TaxPenalty u/s 271D of the Act - Violation of section 269SS of the Act Mode of taking certain loans or deposits Held that:- Without giving any reason as to why he is not following the judgement in the case of Idhayam Publications Ltd.[2006 (1) TMI 97 - MADRAS High Court] as relied upon by the assessee, the First Appellate Authority went on to confirm the penalty which is not a correct approach. The transaction does not fall within the meaning of loan or advance, there is no violation of section 269SS of the Income-tax Act - the promoter Director of the assessee company have contributed these amounts by withdrawing from the capital account in their respective proprietary concerns for the purpose of construction of building and purchase of machinery of the new company, it cannot be treated as a loan or deposit as contemplated u/s 269 SS - In any event shares were allocated by the company to the promoter directors for the amounts contributed the decision in Shri SidhData Ispat P.Ltd. [2012 (9) TMI 846 - DELHI HIGH COURT] and IP. INDIA PVT. LTD. [2011 (11) TMI 252 - DELHI HIGH COURT] followed - no penalty can be levied thus, the penalty levied u/s 269SS of the Act set aside Decided in favour of Assessee.
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