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2010 (8) TMI 126 - ALLAHABAD HIGH COURTShare capital - investment - AO found that none of the 11 persons had the capacity to invest in the shares of a company, which is not well known in the society and whose business future does not seem to be very bright - AO observed that it is a company's own income from undisclosed sources, which has been invested through various persons who in fact do not have actual capacity to invest such heavy amounts in the company - Held that: - Not only with respect to the capacity to pay but also in regard to the investment made and the source from where they have acquired the amount for being invested, findings of fact have been recorded besides holding that the source of investment was established beyond doubt - As a matter of fact, on the floating of the public issue by the company the investors decided to invest their money in the company. In such matters, the source from where the investors have drawn the money could not be asked from the assessee company nor was required to be investigated.
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