03 July 2009
Whether a private Ltd. Company can collect Share Application Money in excess of Rs. 20,000/- in CAsh. Whether Sec. 269SS and 269T of IT Act, 1961 are applicable for Share Application Money.
04 July 2009
Yes it can be acceptable and provision of Sec 269ss and t is not applicable since application money is not loand and adavcnes and deposits
04 July 2009
However the company in this case has to prove the identity and genuiness of the payor of the money in cash and the IT department may ask for the source of the such incomes. A PAN card, the proof of filing of ITR and the amount of icnome declared in that ITR will determine the identity and genuiness of such transactions.
04 July 2009
if the transaction is genuine and party do have sufficient amount in white money then it is advisable not to make any pmt in cash as it is directly temp the IT dept to scrutinised the whole transaction.
07 April 2010
In Balotia Engineering Works (P) Ltd v CIT (2005) 6 (I) ITCL 418 (Jhar HC) it was held that section 269SS is applicable to Share Application money also.
Hence Share Application money exceeding Rs 20000 should be in A/c Payee Cheque
CAclubindia
