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2012 (10) TMI 616 - HC - Income TaxUnexplained share capital - ITAT deleted the addition - Held that:- As decided in COMMR.OF INCOME TAX VERSUS M/S LOVELY EXPORTS(PVT)LTD [2008 (1) TMI 575 - SUPREME COURT OF INDIA] 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 the names, addresses and PAN numbers of the deposits were provided to the AO, which were sufficient to disclose the identity of the persons. The AO did not question their identity and did not summon them, thus the department is free to proceed to reopen the individual assessment of the depositors but it cannot be regarded as undisclosed income - in favour of assessee.
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