TMI Blog2010 (8) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... as undisclosed income of assessee under section 68 of Act, 1961 - Decided in favour of assessee. - IT APPEAL NO. 1133 OF 2010 - - - Dated:- 16-8-2010 - DIPAK MISHRA, MANMOHAN, JJ. Ms. Prem Lata Bansal for the Appellant. JUDGMENT Manmohan, J. The present appeal has been filed under section 260A of Income-tax Act, 1961 (for brevity "Act, 1961") challenging the order dated 23-6-2009 passed by the Income-tax Appellate Tribunal (in short "ITAT") in ITA No. 2041/Delhi/2006, for the assessment year 1998-99. 2. Ms. Prem Lata Bansal, learned counsel for the revenue submitted that ITAT had erred in law in deleting the addition of Rs. 18,00,000 made by the Assessing Officer (in short 'AO') on account of unexplained share applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the money on account of share capital. In respect of all these three companies, the Assessing Officer has directly obtained the bank statement from where relevant cheques on account of share capital were issued. On the basis of these certificates as narrated by the Assessing Officer and CIT(A) we can safely conclude that identity of the shareholders was established and the only grievance of the CIT(A) was with regard to creditworthiness of these shareholders and genuineness of transaction. Hon'ble Supreme Court in the case of Divine Leasing and Finance Limited dismissed the SLP filed by the Revenue against the order of Hon'ble Jurisdictional High Court, with speaking order. In case of Value Capital Service (P.) Ltd., in ITA No. 348/08, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ders, as per provisions of law." 4. In our considered opinion, the approach adopted by CIT(A) and ITAT is in consonance with the decision of Supreme Court in CIT v. Lovely Exports (P.) Ltd. [Application No. 11993 of 2007, dated 11-1-2008] wherein it has been held as under: "2. Can the amount of share money be regarded as undisclosed income under section 68 of Income-tax 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 Assessing Officer, then the Department is free to proceed to reopen their individual assessments in accordance with law. Hence, we find no infirmity with the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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