TMI Blog2010 (8) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... d that: - the share application money cannot be regarded as undisclosed income of assessee under Section 68 of Act, 1961 - 1264/2010 - - - Dated:- 31-8-2010 - CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE MANMOHAN Mrs. Prem Lata Bansal, Advocate MANMOHAN, J: 1. The present appeal has been filed under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls) [for short "CIT(A)] and the Tribunal on the ground that the respondent-assessee had proved identity of the share applicants as well as payments had been received through account payee cheques and the share applicants were assessed to income tax. In fact, the Tribunal in its impugned order has observed as under :- "4. We have considered the contentions of learned DR and carefully gone through ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in accordance with law. Similar was the finding of the Hon'ble Supreme Court in the case of Shipra Retailers (P) Ltd. in SLP No. 451/08 dated 21/1/2008 as also in the case of Divine Leasing Finance Ltd. in SLP No. 375/08 dated 21/1/2008. In the instant case, shares have been allotted to all the share applicants on 4/1/2004. Return of allotment of shares in form No. 2 as per the Companies Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder :- "2. Can the amount of share money be regarded as undisclosed income under s. 68 of IT Act, 1961? We find no merit in this Special Leave Petition for the simple reason that 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 acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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