2012 (12) TMI 170 - HC - Income Tax

Reopening Assessment - bogus share application money - Undisclosed Income - assessee stating that documentary evidence regarding identity and creditworthiness of the share applicants and the genuineness of the transactions were produced - AO Concluded on the basis of enquiry report of Investigation wing - Held that:- Where the assessee adduces evidence in support of the share application monies, it is open to the assessing officer to examine it and reject it on tenable grounds. In case he wishes to rely on the report of the investigation authorities, some meaningful enquiry ought to be conducted by him to establish a link between the assessee and the alleged hawala operators - Decided in favor of assessee.