Share application money in cash

This query is : Open

UMA SHANKER SHARDA (Querist)
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30 May 2010 Dear all,

How much amount in cash can be taken as share application money by a company whether the same be allotted or not in the same year? Can the principal of owner be applied in case of company like in a proprietorship/partnership firm can take capital from proprietor/partner without any limit, where as the share applicant has not become member of the company till allotment pending. Will section 269SS will be attracted? if available case law is provided, it will be a great help.

Thanks in advance.

Deepak Goel

Deepak Goel (Expert)
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30 May 2010 Company can receive any amount of share application money in cash and there is not applicable u/s 269SS.

UMA SHANKER SHARDA

UMA SHANKER SHARDA (Querist)
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30 May 2010 Dear Mr Deepak, but in some cases, assessing officer treats it as voilation of sec 269s if not allotted in same fin year. If there is any decided case or ruling available.

Thanks

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