James Hotels Ltd. v. The DCIT, Chandigarh

Parties Involved

Facts Summary

James Hotels Ltd., a public limited company, received Rs. 2948 lacs as share application money from directors/shareholders during the assessment year 2012-13. The company received Rs. 175 lacs in cash from directors/shareholders. The Assessing Officer (AO) held that the company violated Section 269SS of the Income Tax Act by accepting these cash deposits, leading to a penalty of Rs. 1.75 Crores. The company appealed to the Commissioner of Income Tax (Appeals) (CIT(A)), who deleted the penalty. The Department appealed to the Tribunal.…

Legal Issues

• 1. Whether the penalty imposed by the Additional Commissioner of Income Tax (Addl.CIT) for accepting cash deposits as share application money is justified.

Judgment Outcome

Decided in favour of Revenue.

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