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2023 (6) TMI 133 - HC - Income TaxReopening of assessment - addition u/s 68 - unexplained cash credit - shares were issued to the Director of assessee Company at Rs. 10 whereas, shares were allotted to M/s. Walden at a premium of Rs. 990, thus nature of money received from M/s. Walden was not satisfactorily explained - HELD THAT:- So far as any sum credited consists of share application money, the same is dealt by proviso to Section 68. Admittedly, the proviso had been inserted with effect from 01.04.2013. Admittedly the Assessment year in this case is 2008-09. Therefore as held in Kumar Nirman [2020 (3) TMI 340 - KARNATAKA HIGH COURT] the authority in NRA Iron & Steel Pvt. Ltd[2019 (3) TMI 323 - SUPREME COURT] has no application. As decided in Gagandeep Infrastructure Pvt Ltd [2017 (3) TMI 1263 - BOMBAY HIGH COURT] pre-amended section 68 of the Act has held that where the Revenue urges that the amount of share application money has been received from bogus shareholders then it is for the Income-tax Officer to proceed by reopening the assessment of such shareholders and assessing them to tax in accordance with law. It does not entitle the Revenue to add the same to the assessee’s income as unexplained cash credit. Decided in favour of assessee.
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