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2011 (4) TMI 841 - ITAT DELHIPenalty under section 271D - Unaccounted share application money - CIT(A) deleted the penalty - Held that:- The amount received from a Director or a shareholder of a private Company cannot be treated as a loan or deposit within the meaning of companies (acceptance of deposits, Rule 1975), however assessee failed to place on record copies of these rules and bring to our notice exact provisions. He simply just raised this argument but could not substantiated, that how it has to be given preference over the provisions of Income-tax Act. Confronting the assessee submittion that assessee has sent Form No. 23AC to the Registrar to Companies showing the receipt of share application money and also point out when this form was submitted he failed to substantiate this contention also. He was unable to give any reply to our query. The assessee has not received share application money. It has received the loan/deposit in contravention to section 269SS and it deserves to be visited with penalty - the appeal of revenue allowed.
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