12 August 2011
Courts have given divergent views while it exceeded Rs.20,000/- per person leading to a controversy regarding application of section 269SS of the Income tax Act,1961.
12 August 2011
Check out the decision of Jharkhand HC (2005) 275 ITR 399 (Jharkhand), held that Share application money partakes the character of deposit within the meaning of 269SS. 1. Receipt of Share Application money in cash exceeding Rs.20,000 should be avoided. 2. There is no issue with regard to allotment of shares against share application money received in cash.
12 August 2011
In the case of Jagvijay Auto finance(p) ltd., v CIT (1995) 52 ITD 504(Jp-Trib) it has been held that share application money does not constitute deposit covered u/s 269SS. That is why I said about controversy.
17 August 2011
Sir I have taken Rs. 10 Lakhs in Cash in Share Application and cannot allot the shares bcos Paidup is already exhausted. What are the consequences?
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