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2018 (5) TMI 753 - AT - Income TaxUndisclosed income under section 68 - unexplained loan - Held that:- As per the settled law, if the identity of the shareholders and genuineness of transactions had been established by the assessee, the addition could have been made in the hands of shareholder(s). We are of the considered view that assessee has duly explained the source of money received and the assessee is not answerable for the source of money in the hands of investors, who had already died. As decided in case of Lovely exports [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 reopen their individual assessments in accordance with law. - Decided in favour of assessee.
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