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TMI Blog2016 (9) TMI 1337X X X X Extracts X X X X X X X X Extracts X X X X ..... and Sheets. During the survey operation carried out at the business premises of the assessee on July 18, 2011, it was revealed that the assessee has received bogus share application money of Rs. 2.50 crores from 7 different companies, which was even admitted by the assessee in his statements. With respect to these persons on whose behalf share application money has been shown to be received by the assessee, the Assessing Officer directing the assessee to furnish necessary details such as Audit Report, profit and loss account, balance-sheet, details of bank account, Income-tax returns and also to produce them for verification of genuineness. No one personally attended the proceedings and even the reply received regarding the information was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the share capital by alleged bogus shareholders as unexplained cash credit of the assessee is legally sustainable, more so, when no finding to prove identity, genuineness and creditworthiness of the share applicants has been given by the Tribunal ? (iii) Whether the order passed by the Tribunal is perverse and contrary to the specific findings recorded by the Commissioner of Income-tax (Appeals) as well as the Assessing Officer and the asses see's own statements recorded during survey ? (iv) Whether on the facts and circumstances of the case, the finding of the Tribunal is perverse, contrary to the record and untenable in the eye of law ?" 4. Counsel for the appellant has mainly contended that all the companies which were floa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w, the decision of the Supreme Court in the case of CIT v. Lovely Exports P. Ltd. reported in [2009] 319 ITR (St.) 5 (SC) held as under : "Can the amount of share money be regarded as undisclosed income under section 68 of the 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 impugned judgment." 7. Counsel for the respondents relied upon the following decisions : (i) CIT v. Orissa Corporation P. Ltd. [1986] ..... X X X X Extracts X X X X X X X X Extracts X X X X
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