TMI Blog2010 (10) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee under Section 68 of the Act - Appeal is dismissed - 1507/2010 - - - Dated:- 1-10-2010 - CORAM : HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE MANMOHAN Mr. Sanjeev Sabharwal, Advocate MANMOHAN, J. 1. The present appeal has been filed under Section 260A of Income Tax Act, 1961 (for brevity, "Act") challenging the order dated 02nd July, 2009 passed by the Income Tax Appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conclusion that in the totality of all the facts, evidences and details brought on the record both by the Assessing Officer and the appellant, it is clear that the identity of the shareholders is established. All the persons who were summoned by the Assessing Officer to make the enquiries from them had presented themselves and confirmed the subscription made by them. It is also a fact that the enq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Lovely Exports, it has categorically laid down by the Hon'ble Supreme Court that no addition can be made on account of share application money as undisclosed income under Section 68 of the Income Tax Act, 1961 if the same is received by the assessee company even from the alleged bogus shareholders, whose names are given to the Assessing Officer, then the department is free to proceed to reopen th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account of receipt of share application money from 27 persons for obtaining the share application money. The addition has been deleted by the Ld. CIT(A) by following the judgment of Hon'ble Delhi High Court rendered in the case of CIT v. Divine Leasing and Finance Ltd. 158 Taxmann 440 (Del). In the light of this fact, we find that this issue is now covered in favour of the assessee by the judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to make the enquiry from them has presented themselves and confirmed the subscription made by them. Ground No.3 of the revenue is rejected." 5. Keeping in view the mandate of law in Commissioner of Income Tax Vs. Lovely Exports (P) Ltd., 216 CTR 195 (SC) and the concurrent findings of fact arrived at by the two authorities below, the share application money cannot be regarded as undisclosed i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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