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2012 (9) TMI 846 - HC - Income TaxPenalty u/s 271D - Disallowance of share application amounts in cash - ITAT deleted the levy - Held that:- As decided in CIT, West Bengal I Versus Vegetable Products Limited [1973 (1) TMI 1 - SUPREME COURT] where two High Courts had confirmed a view acceptable to the assessee where as two other High Courts had taken a diametrically opposite view, interpretation which is favourable to the assessee, that cannot be considered as an unacceptable or untenable one, at least for purposes of penalty. Thus it is held that there is no infirmity in the order of the Tribunal since there were two possible views – one directly in favour of the assessee is need to be taken as per COMMISSIONER OF INCOME-TAX Versus RUGMINI RAM RAGAV SPINNERS P. LTD [2007 (7) TMI 237 - MADRAS HIGH COURT] that the share application money was not deposit or loan under the provisions of Section 269T and therefore, the penalty u/s 271D was liable to be deleted as Tribunal rightly held that cash payments pertains to refund of share application money and not repayment of deposit or loan - in favour of assessee.
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