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Issues involved: Condonation of delay in refiling the appeal, challenge to the order passed by the Income-tax Appellate Tribunal regarding assessment year 1997-98.
Condonation of Delay: The High Court condoned the delay in refiling the appeal based on the reasons stated in the application supported by an affidavit. Challenge to Tribunal Order: The appeal under section 260A of the Income-tax Act challenged the Tribunal's order regarding the Assessing Officer's jurisdiction to investigate the source and identity of shareholders, and the onus on the assessee to prove the genuineness of share application money transactions. Assessing Officer's Jurisdiction: The Court clarified that the identity of shareholders can be investigated by the Assessing Officer, and while this is a finding of fact, not a question of law, the assessee had provided evidence to establish the genuineness of the share application money transactions. Evidence Presented: The assessee had submitted relevant evidence, including affidavits, share application forms, confirmations from applicant companies, Board of Directors Resolutions, and bank details, to prove the legitimacy of the share application money received. Tribunal's Finding: The Appellate Tribunal, based on the evidence presented, concluded that the share application money from the companies in question was genuine, as the identity and creditworthiness of the shareholders were established, and the addition made by the CIT(A) was unjustified and deleted. Creditworthiness of Shareholders: The Tribunal noted that the share applicants were Income-tax payees, indicating their existence, and emphasized that the evidence provided by the assessee proved the genuineness of the transactions, leading to the deletion of the addition. Conclusion: The Court found that no questions of law, let alone substantial questions of law, arose in the case, given the overwhelming evidence establishing the legitimacy of the share application money transactions.
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