TMI Blog2010 (10) TMI 1188X X X X Extracts X X X X X X X X Extracts X X X X ..... money. 3. Brief facts of this issue are that a search seizure operation was conducted at the premises of the Impex group on 05.01.04. During the course of search, a survey was conducted at the premises of the assessee company wherefrom certain documents were seized/impounded and proceedings under section 153C were initiated against the assessee company. During the year under appeal, the assessee company was merely in the formation stage and no actual business was started in this year. The share application money to the extent of ₹ 36,75,000/- was received during this year from several share-applicants and the shares were also allotted correspondingly towards the end of the accounting year. The assessment was finally completed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital and share application money a/cs, forms of applications for the shares (containing the cheque no. and the name of the bank in case of the company-applicants) and other details relating to the respective accounts and assessment files of the individual share applicants, which are placed at page nos. 10 to 54 of the paper book. The Ld. Counsel further submitted that the income-tax file numbers of the share applicants was also duly furnished and the shares were allotted to all the share applicants during the course of the relevant accounting year. The Ld. Counsel further relied on the orders of the Hon ble Supreme Court in the case of CIT-Vs- Lovely Exports (P) Ltd. reported in 216 CTR (SC) 195. Therefore, he contended that the action ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be mentioned here that the AR has subsequently filed one copy of assessment order dated 12.12.2008 in the case of M/s. Donald Investment Finance P. Ltd. for A.Y. 2006-07. In this order, the AO has examined five share applicants of this Company on test check and found that all the shareholders were genuine. From a perusal of the order of the AO, it will be seen that the fact of the case is in confirmatory with the decision of the Apex Court where it has been very clearly held that the only obligation of the company receiving the share application money is to prove the existence of the shareholders and for which the assessee had discharged the onus of proving the existence and also the source of share application money received, confirm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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