2015 (2) TMI 116

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e Tax JUDGEMENT (Delivered by R.SUDHAKAR,J.) The above Tax Case (Appeals) are filed by the Revenue as against the order of the Income Tax Appellate Tribunal raising the following substantial questions of law:            1. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the share application mon .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... in this case relates to the assessment years 2002-03, 2003-04 and 2004-05. The assessee company during the assessment years in question had accepted the share application money in cash from various persons. The Assessing Officer was of the view that the money received as share application was of the nature of the deposit in the hands of the company. Hence, a show cause notice was issued on the gro .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Tribunal. The Tribunal after hearing both the parties, dismissed the appeals, following the decision of this Court cited supra, holding that the Revenue has not doubted the genuineness of the transaction and the assessee had a bonafide belief that share application money received was neither loans or deposits. The Tribunal further held that when rigours of Section 269SS of the Income Tax Act canno .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... pose of allotment of shares and it is not a deposit or loan. In this case, 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. The first appellate authority as well .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e holding that 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.   8. In the present case also, 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. Hence, following the decision of this Court cited supra, we find .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X