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2018 (1) TMI 194 - HC - Income TaxReopening of assessment - undisclosed income of the assessee company which received the contribution to its share capital - Held that:- Prior to amendment to Section 68 of the Act by addition of the proviso, there is no responsibility upon the assessee to explain the source of share capital as the amendment is not retrospective. Further where share application money is received from the alleged bogus share holders, whose names are available with the Assessing Officer, then the Revenue is free to open their individual assessments in accordance with law, but it could not be regarded as undisclosed income of the assessee company which received the contribution to its share capital. In view of the decisions of this Court in Gagandeep Infrastructure Pvt. Ltd. (2017 (3) TMI 1263 - BOMBAY HIGH COURTa) and the Apex Court in Lovely Exports (P) Ltd. (2008 (1) TMI 575 - SUPREME COURT OF INDIA), prima facie, the Assessing Officer, could not have reason to believe that the income chargeable to tax has escaped assessment. - Decided in favour of assessee.
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