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2013 (4) TMI 657 - ITAT DELHIUnexplained cash credit - addition u/s. 68 - Held that:- Assessee company has submitted that the share application money was received through the proper banking channel. The above also establishes the identity of the share application money provider company which are duly incorporated Company under the Companies Act. In this regard, confirmation by way of affidavit, PAN No., resolution passed by the share application provider company and the evidence of share allotment to the share company provided by the assessee company was duly submitted. In this regard, we note that Assessing Officer has not made any further independent enquiries to substantiate that the assessee has received bogus share application entry. Thus as decided in CIT Vs. Lovely Exports [2008 (1) TMI 575 - SUPREME COURT OF INDIA] that 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 reopen their individual assessments in accordance with law, but it cannot be regarded as undisclosed income of the assessee. Also see C.I.T. vs. Gangeshwari Mtetal (P) Ltd. [2013 (1) TMI 624 - DELHI HIGH COURT] & C.I.T. vs. Goel Sons Golden [2013 (4) TMI 571 - DELHI HIGH COURT] . Thus as Assessee has submitted enough cogent material before the AO which substantiate the identity, creditworthiness and genuineness of the transactions who in turn has not done any exercise to bring on record any evidence which refute the above submissions of the assessee - In favour of assessee.
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