9911796707
TMI Blog2018 (5) TMI 623X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act, 1961 (hereinafter called as 'the Act'). In this case, the Ld. Addl. CIT observed that the assessee has received a payment of Rs. 50 lakhs by way of cash as a loan. Therefore, the Ld. Addl. CIT, Range-2, Vijayawada has initiated penalty u/s 271D r.w.s. 269SS of the Act. As per the details furnished by the Ld. Addl.CIT, the assessee company has received the share application money from the following Directors of the company. Sri Peravalli Venkata Ramana - Rs. 25,00,000/- Smt. Peravalli Sabitha - Rs. 25,00,000/- 3. The Addl. CIT has called for the explanation of the assessee and the assessee's A.R. submitted that the company has not received any loan or deposit but the company has received the share application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shable in respect of the case law relied upon by the Ld. Addl. CIT in the case of Bhalotia Engineering Works Pvt. Ltd. (supra) and following decisions of (i)CIT v. Sri Sidhdata Ispat (P) Ltd. [2012 - TIOL - 786 - HC (Del.)], (ii)CIT v. IP India (P) Ltd. (2012)70 DTR (Del.) 452, 2011-TIOL-811-HC (Del.) (iii) CIT v. ldhayam Publications Ltd. (2006) 285 ITR 221 (Mad.) allowed the appeal of the assessee. For ready reference and for the sake of clarity, we extract relevant paragraph of the CIT(A)'s order as under: "5. I have perused the submissions of appellant and the case laws relied on by Assessing Officer and appellant. 5.1. Admittedly, in appellant's case, 2.5 lakh (each) shares were allotted in November, 2014 to both directors of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Courts in the following cases i. CIT v. Sri Sidhdata Ispat (P) Ltd. [2012 - TIOL - 786 - HC (Del.)] ii. CIT v. IP India (P) Ltd. (2012)70 DTR (Del.) 452, 2011-TIOL- 811-HC (Del.) iii. CIT v. ldhayam Publications Ltd. (2006) 285 ITR 221 (Mad.) 5.4 In view of the above, I hold that penalty u/s 271D is not leviable in this case. I, therefore, cancel the penalty levied." 6. We have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. In this case, both the Directors have contributed the share application money to the assessee company in the year 2011 and subsequently, the shares were allotted to the share applicants. This is evident from the balance sheet of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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