Application money
This query is : Resolved
21 November 2012
I just want to know that application money pending allotment in a private limited company can be returned in cash.
CA CS Amit S. Kedia
(Expert)
21 November 2012
Yes..There is no violation of section 269SS and 269T
CS Ankur Srivastava
(Expert)
22 November 2012
However, it should be returned by way of Account Payee Cheque or DD.
CA CS Amit S. Kedia
(Expert)
27 November 2012
Dear Mr. Srivastav,
Even if it is paid or received in cash there is no violation of section 269SS or 269T. The money in cash by a company towards allotment of shares, was neither a loan nor a deposit and if it is not a "loan or deposit" then section 269T will not attract.
Citation-
1. Hon’ble Madras High Court in CIT Vs. Rugmini Ram Ragav Spinners Private Ltd. (2008), 304 ITR 417
2. Deputy CIT V/s. M/s Alpex Exports (P) Ltd-ITAT(DELHI)-28/08/2012
Even if it is paid or received in cash there is no violation of section 269SS or 269T. The money in cash by a company towards allotment of shares, was neither a loan nor a deposit and if it is not a "loan or deposit" then section 269T will not attract.
Citation-
1. Hon’ble Madras High Court in CIT Vs. Rugmini Ram Ragav Spinners Private Ltd. (2008), 304 ITR 417
2. Deputy CIT V/s. M/s Alpex Exports (P) Ltd-ITAT(DELHI)-28/08/2012
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