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2016 (8) TMI 65 - AT - Income TaxPenalty under section 271D - violation of the provisions of section 269SS - share application money exceeding ₹ 20,000/- was received in cash - Held that:- The authorized share capital of the assessee company was already paid and nothing was left further against which the assessee could receive the share application money and, therefore, the argument of the assessee that the share application money exceeding ₹ 20,000/- was received in cash under bonafide belief that section 269SS do not prohibit so, is fallacious and devoid of any merit. We agree with the learned Departmental Representative that the assessee has squarely failed in pointing out any reasonable cause as why the money was received in cash despite both the subscriber and assessee company having enjoyed bank facilities. In view of the above discussion, we are of the considered opinion that the assessee failed to prove that there existed a reasonable cause for failure to comply with the provisions of section 269SS of the Act. Accordingly, we are not inclined to grant any immunity from levy of penalty under section 271D of the Act on the ground of existence of reasonable cause for failure to comply with the provisions of section 269SS of the Act. - Decided in favour of revenue
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