TMI Blog2011 (6) TMI 755X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. In this case Assessing Officer has found that the assessee has received ₹ 4,34,00,000/- on account of unexplained credits in the form of share application money. Assessing Officer further found that the said application money were liable for addition as unexplained receipts. The reasons thereof as stated by the Assessing Officer were as under:- Notices u/s. 133(6) were sent to investors out of which notices sent to below mentioned entities are received back as underserved. S.No. Name of the investor Amount invested 1. Fairdeal Information Technology Pvt. Ltd. 1,00,00,000/- 2. Sunli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ired under Companies Act. Ld. Commissioner of Income Tax (Appeals) further observed that Assessing Officer has not doubted the identity of the share applicants which was the main parameter to be discharged by the assessee in respect of the share application money. Accordingly, Ld. Commissioner of Income Tax (Appeals) referred the following decision of the Hon ble Jurisdictional High Court in the case of C.I.T. vs. Dwarkadhish Investment P Ltd. [2010] 194 Taxman 43 (Delhi), wherein following was held:- Though in s. 68 proceedings, the initial burden of proof lies on the assessee yet once he proves the identity of the creditors/ share applicants by either furnishing their PAN or income tax assessment number and shows the genuineness of tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l the five cases. Thus, the identity of these share applicants is duly established. The Assessing Officer has also not disputed the identity of share applicants. In these circumstances, Hon ble Apex Court decision in the case of C.I.T. vs. Lovely Exports P Ltd. (216 CTR 195) is relevant. In this case, it was held 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, but it cannot be regarded as undisclosed income of the assessee. 7. In the background of the aforesaid discussion and precedent, in our considered opinion, there is no illeg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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