Facts: The assessee-company received share application money for preference shares amounting to Rs. 20,000 or more from individuals, not via account payee cheque or bank draft. Penalty proceedings were initiated by the AO under sections 271D/271E for violating the provisions of section 269SS. The Tribunal ruled that share application money does not qualify as a loan or deposit, hence sections 269SS or 269T did not apply, and no penalty was justified.
Decision: Share application money does not meet the criteria of a loan or deposit as defined in the law. Provisions of sections 269SS and 269T, intended for regulating loans and deposits, do not apply to share application money. As share application money is not categorized as a loan or deposit, penalties under sections 271D or 271E could not be imposed, leading the HC to uphold the Tribunals decision in favor of the assessee.

Facts: The assessee-company received share application money for preference shares amounting to Rs. 20,000 or more from individuals, not via account payee cheque or bank draft. Penalty proceedings were initiated by the AO under sections 271D/271E for violating the provisions of section 269SS. The Tribunal ruled that share application money does not qualify as a loan or deposit, hence sections 269SS or 269T did not apply, and no penalty was justified.
Decision: Share application money does not meet the criteria of a loan or deposit as defined in the law. Provisions of sections 269SS and 269T, intended for regulating loans and deposits, do not apply to share application money. As share application money is not categorized as a loan or deposit, penalties under sections 271D or 271E could not be imposed, leading the HC to uphold the Tribunals decision in favor of the assessee.

Facts: The assessee-company received share application money for preference shares amounting to Rs. 20,000 or more from individuals, not via account payee cheque or bank draft. Penalty proceedings were initiated by the AO under sections 271D/271E for violating the provisions of section 269SS. The Tribunal ruled that share application money does not qualify as a loan or deposit, hence sections 269SS or 269T did not apply, and no penalty was justified.
Decision: Share application money does not meet the criteria of a loan or deposit as defined in the law. Provisions of sections 269SS and 269T, intended for regulating loans and deposits, do not apply to share application money. As share application money is not categorized as a loan or deposit, penalties under sections 271D or 271E could not be imposed, leading the HC to uphold the Tribunals decision in favor of the assessee.

Facts: The assessee-company received share application money for preference shares amounting to Rs. 20,000 or more from individuals, not via account payee cheque or bank draft. Penalty proceedings were initiated by the AO under sections 271D/271E for violating the provisions of section 269SS. The Tribunal ruled that share application money does not qualify as a loan or deposit, hence sections 269SS or 269T did not apply, and no penalty was justified.
Decision: Share application money does not meet the criteria of a loan or deposit as defined in the law. Provisions of sections 269SS and 269T, intended for regulating loans and deposits, do not apply to share application money. As share application money is not categorized as a loan or deposit, penalties under sections 271D or 271E could not be imposed, leading the HC to uphold the Tribunals decision in favor of the assessee.

Facts: The assessee-company received share application money for preference shares amounting to Rs. 20,000 or more from individuals, not via account payee cheque or bank draft. Penalty proceedings were initiated by the AO under sections 271D/271E for violating the provisions of section 269SS. The Tribunal ruled that share application money does not qualify as a loan or deposit, hence sections 269SS or 269T did not apply, and no penalty was justified.
Decision: Share application money does not meet the criteria of a loan or deposit as defined in the law. Provisions of sections 269SS and 269T, intended for regulating loans and deposits, do not apply to share application money. As share application money is not categorized as a loan or deposit, penalties under sections 271D or 271E could not be imposed, leading the HC to uphold the Tribunals decision in favor of the assessee.

Facts: The assessee-company received share application money for preference shares amounting to Rs. 20,000 or more from individuals, not via account payee cheque or bank draft. Penalty proceedings were initiated by the AO under sections 271D/271E for violating the provisions of section 269SS. The Tribunal ruled that share application money does not qualify as a loan or deposit, hence sections 269SS or 269T did not apply, and no penalty was justified.
Decision: Share application money does not meet the criteria of a loan or deposit as defined in the law. Provisions of sections 269SS and 269T, intended for regulating loans and deposits, do not apply to share application money. As share application money is not categorized as a loan or deposit, penalties under sections 271D or 271E could not be imposed, leading the HC to uphold the Tribunals decision in favor of the assessee.