Cash Receipt of Share Application Money is not violation of section 269SS

AO relied upon decision in M/s Bhalotia Engineering Works Pvt. Ltd. (supra) wherein it was held that receipt of share application monies in cash, in violation of provisions of section 269SS of the Act should be treated as “deposit” with the consequence that the assessee would be liable for penalty under Section 271D of the Act. The AO in the said case did not examine whether the share application money can be treated as “loan” or “deposit” within the meaning of provisions of sec. 269SS of the Act nor the Addl. CIT. The ld. CIT(A) found as a fact that the shares were subsequently al...