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2013 (10) TMI 708 - HC - Income TaxAssessment of Share Application Money - Whether the ITAT was right in observing if the share application money was assessed in the hands of the share applicants, the same would not be assessed in the hands of the respondent-assessee – Held that:- Relying upon CIT Vs. Orissa Corporation (P) Ltd. [1986 (3) TMI 3 - SUPREME Court ] - Only clarification is required - The issue on merits has been remanded to the Assessing Officer - the observations made by the tribunal implies and means that the Assessing Officer should objectively examine the whole issue and in case he finds that the transactions are genuine and are fully recorded by the share applicants, then no addition shall be made in the hands of the respondent-assessee - the two conditions have to be satisfied - Firstly the transaction should be genuine, true and not a camouflage, and secondly the transaction should be duly recorded in the books of the share applicants - In case, any of the two conditions are not satisfied, then it will be open to the Assessing Officer to act in accordance with law and made appropriate additions if justified and mandated by the Statute - Decided in favour of Revenue.
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