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2024 (3) TMI 209 - ITAT BANGALORERevision u/s 263 - Addition invoking of provisions of section 68 in respect of share premium received by the assessee - HELD THAT:- Both the parties herein fairly conceded that these orders are passed by the lower authorities before passing of the judgement by Hon’ble Supreme Court in assessee’s own case [2022 (1) TMI 774 - SUPREME COURT] which have full bearing on the decision of ld. AO in these assessment years wherein held admittedly, every one of the investors procured shares of the company in liquidation and each shareholder had a representative in the board of directors. Since the board controlled the company, the directors were guilty of the conduct of the affairs of the company in a fraudulent manner. Since each shareholder had a representative in the board, the shareholders had to take the blame for the misdeeds of the directors; Additionally, the shareholders were fully aware of the fact that the application for approval dated 02.02.2006 to the FIPB was for ISP services. But they entered into a Share Subscription Agreement on 06.03.2006 for Devas services. The Share Subscription Agreement discloses that they were aware of the false statements contained in the Agreement dated 28.01.2005. Therefore, the shareholders, who now want to reap the fruits of a tree, fraudulently planted and unlawfully nurtured, cannot feign ignorance and escape the allegations of fraud. As above findings of Hon’ble Supreme Court is having great bearing on the decision of lower authorities in these assessment years since the said judgement of Hon’ble Supreme Court was delivered subsequent to the decision of the lower authorities and as such, it is appropriate to remit the entire issue to the file of ld. AO for de-novo consideration.
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