Section 269SS & 269T Not Applicable to Share Application Money; No Penalty Under Section 271D or 271E

CIT Vs Vamshi Chemicals Ltd (Calcutta High Court) The Calcutta High Court in the case of CIT vs. Vamshi Chemicals Ltd addressed whether the provisions of Sections 269SS and 269T of the Income Tax Act, 1961, apply to share application money and if penalties under Sections 271D and 271E can be imposed in such cases. Background: The case arose from an appeal against the Income Tax Appellate Tribunal’s decision which had ruled in favor of Vamshi Chemicals Ltd. The core issue was whether the receipt and repayment of share application money in amounts exceeding Rs. 20,000/- without using accou...