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2011 (1) TMI 190 - HC - Income Tax
Money laundering - It appears from the record that in the assessment proceedings it was noticed that the assessee company during the year under consideration had brought ₹ 4,00,000/- and ₹ 20,00,000/- towards share capital and share premium respectively amounting to ₹ 24,00,000/- from four shareholders being private limited companies - Assessing Officer invoked the provisions under Section 68/69 of the Income Tax Act and made addition of ₹ 24,00,000 - Supreme Court in the case of C.I.T. vs. M/s. Lovely Exports Pvt. Ltd., reported in (2008 (1) TMI 575 - SUPREME COURT OF INDIA) allowed the appeal by holding that share capital/premium of ₹ 24,00,000/- received from the investors was not liable to be treated under Section 68 as unexplained credits and it should not be taxed in the hands of the appellant company - Decided against the revenue