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2010 (5) TMI 565 - ITAT, KOLKATAPenalty u/s 271D - Treatment of share application money as Deposit - The object of introducing section 269SS is to ensure that a taxpayer is not allowed to give false explanation for his unaccounted money, or if he makes some false entries, he shall not escape by giving false explanation for the same. During search and seizures, unaccounted money is unearthed and the taxpayer would usually give the explanation that he had borrowed or received deposits from his relatives or friends and it is easy for the so-called lender also to manipulate his records to suit the plea of the taxpayer. The main object of section 269SS was to curb this menace of making false entries in the account books and later giving an explanation for the same.” - In absence of any judgment of Hon’ble Apex Court or of Hon’ble jurisdictional High Court on the issue, the considered opinion that the contribution towards share application money received in cash does not come within the scope and ambit of the expression ‘deposit’ appearing in the provisions of section 269SS in order to justify the levy penalty under section 271D - Hence the ld. CIT(A) was correct in law in deleting penalty under section 271D - The appeal of the revenue is dismissed
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