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2014 (12) TMI 392 - HC - Income TaxDeletion of penalty u/s 271D – Violation of provisions of Section 269SS or not – Amount received for the purpose of allotment of shares or not - Held that:- The Tribunal was rightly of the view that in CIT vs. Rugmini Ram Raghav Spinners Ltd. [2007 (7) TMI 237 - MADRAS HIGH COURT] it has been held that share application money is neither deposit nor loan and therefore, provisions under section 269-SS and section 269-T have no application and there cannot be penalties under section 271-D and section 271-E - if the assessee proves that there is a reasonable cause, he is not subject to levy of penalty - the amount received by the assessee is only for the purpose of allotment of shares and it is not a deposit or loan - the reasonable cause is that the assessee was under the bona fide belief that the money received is only for the purpose of allotment of shares - also, there is no material or evidence or any compelling reason produced by the Revenue to prove that the money received is a deposit or loan - it is a question of fact and the order of the Tribunal is not a perverse one - the assessee was under the bona fide impression that the money received was only towards allotment of shares and it is not a loan or deposit – thus, as such no substantial question of law arises for consideration – Decided against revenue.
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