TMI Blog2016 (11) TMI 951X X X X Extracts X X X X X X X X Extracts X X X X ..... 2014 - - - Dated:- 11-7-2016 - N. K. Saini (Accountant Member) And Kuldip Singh (Judicial Member) For the Appellant : Sanjay Kumar, Departmental Representative For the Respondent : None ORDER Kuldip Singh (Judicial Member) 1. The appellant, Income-tax Officer, Ward 18(4), New Delhi (hereinafter referred to as the Revenue ) by filing the present appeal sought to set aside the impugned order dated October 4, 2013 passed by the Commissioner of Income-tax (Appeals)-XXI, New Delhi qua the assessment year 2006-07 on the grounds inter alia that : (i) The learned Commissioner of Income-tax (Appeals) erred in law and on the facts of the case in cancelling the penalty of ₹ 95,35,750 imposed by the Additional Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shra, chartered accountant/authorised representative of the assessee put in appearance and filed written submissions. Finding the explanation furnished by the assessee not tenable, the Assessing Officer came to the conclusion that the assessee has failed to prove genuineness and creditworthiness of the parties from whom he has received the money by producing them, the amount of ₹ 1,00,35,750 being cash received by the assessee-company, claimed to be share capital, share premium and share application money is only a cover up explanation for circumventing the provisions of section269SS and held the assessee to be liable for penalty of ₹ 95,35,750 being the amount received/taken/accepted in cash. 4. The assessee carried the matt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as explained one and balance amount of ₹ 44,65,750 as unexplained amount. 9. To adjudicate the controversy at hand, provisions contained under section 269SS of the Act are reproduced for facility of reference as under : 269SS. No person shall, after the 30th day of June, 1984, take or accept from any other person (hereafter in this section referred to as the depositor), any loan or deposit otherwise than by an account payee cheque or account payee bank draft if,- (a) the amount of such loan or deposit or the aggregate amount of such loan and deposit ; or (b) on the date of taking or accepting such loan or deposit, any loan or deposit taken or accepted earlier by such person from the depositor is remaining unpaid (wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o in section 51 of that Act ; (ii) 'co-operative bank' shall have the meaning assigned to it in Part V of the Banking Regulation Act, 1949 (10 of 1949) ; (iii) 'loan or deposit' means loan or deposit of money. 10. Bare perusal of the provisions contained under section 269SS, particularly Explanation to the section goes to prove that loan or deposit means loan or deposit of money meaning thereby receipt of cash as share application money is neither a loan nor deposit and as such, provisions contained under section 269SS are not attracted. 11. The hon'ble jurisdictional High Court in the case cited as CIT v. I. P. India P. Ltd. [2012] 343 ITR 353 (Delhi) while examining the identical issue has held that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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