2013 (1) TMI 624 - HC - Income Tax

Unexplained share application - addition u/s 68 - ITAT deleted the addition - Held that:- The facts of the present case are more in line with facts of Lovely Exports (P) Ltd. (2008 (1) TMI 575 - SUPREME COURT OF INDIA) wherein held that if the share application money is received by the assessee-Company from alleged bogus shareholders, whose names are given to the AO, then the Department is free to proceed to re-open their individual assessments in accordance with law - not to be treated as undisclosed income.

As in the present case there was a clear lack of inquiry on the part of the assessing officer once the assessee had furnished all the material. In such an eventuality no addition can be made under section 68 - in favour of assessee.