Agrico Engg. Works (India) Pvt. Ltd. vs Commr. Of C. Ex. on 10 October, 2000
In
response to the notice, it was mainl y submitted that facts in the case of Bhalotia
Engineering Works Pvt Ltd (supra) are distinguishable because assessee has
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accepted Share Application Money in cash from directors only and not from any
outsiders. Further, the loans have been accepted as genuine even by the Assessing
Officer after scrutiny assessment. It was further submitted that Share Application
Money is not governed by the definition of deposit as per rule 2(b)(ix) of the
Company's (Acceptance of Deposit) Rules, 1975, because it clearl y provides that
deposits would not include any amount received from person who at the time of
receipt was Director or relative to the Director or Member of a company.