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2016 (6) TMI 1225 - HC - Income TaxAddition invoking section 2(22)(e) - amounts received as share application money by companies from companies in both of which the respondent assessee has beneficial interest - Held that:- On similar facts, the Delhi High Court and Madras High Court in Sumit Chopra (2011 (4) TMI 1374 - DELHI HIGH COURT) and Rugmini Ram Ragav (2007 (7) TMI 237 - MADRAS HIGH COURT) has also taken a view that the share application money cannot be treated as loans and advances for purposes of section 2(22)(e) of the Act. Moreover, on examination of the facts, both the Commissioner of Income-tax (Appeals) and the Tribunal have held that what was received was share allotment money and, therefore, could not be considered to be a loan and/or advance. It is to be further noted that it is not the case of the Revenue that the transaction of taking money for allotment of shares was a colourable device to evade taxes. In the aforesaid circumstances, no reason has been shown as to why the concurrent finding of fact arrived at by the Commissioner of Income-tax (Appeals) and the Tribunal holding that share allotment money could not be considered to be loans and advances is required to be disturbed. This finding was reached on an analysis of facts. Appeal is admitted on question No. (ii) - "Whether on the facts and circumstances of the case and in law, the Tribunal was justified in holding that investment made in two distinct adjacent flats would qualify for exemption under section 54F without appreciating the fact that the said section provides exemption in respect of a residential property implying a single residential unit only ?"
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