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2013 (2) TMI 452 - ALLAHABAD HIGH COURT
Share application money – Whether deposits in shape of share application money can be treated as genuine – Held that:- In CIT v. Lovely Exports P. Ltd.[2008 (1) TMI 575 - SUPREME COURT OF INDIA] it was held that if the assessee produces the names, addresses, PAN details of the shareholders then the onus on the assessee to prove the source of share application money stands discharged – If the AO was not satisfied with the credit worthiness of the shareholders, it was open to the assessing authority to verify the same in the hands of the shareholders concerned – Further 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 - Therefore Department is free to proceed to reopen their individual assessments of the shareholders whose names and details were given to the AO.