2011 (10) TMI 742 - HC - Income Tax

Summary

Issues involved: Challenge to order of Income Tax Appellate Tribunal regarding addition of unexplained credits as share capital.

Summary:
1. The Revenue challenged the Tribunal's order regarding the addition of Rs. 12,00,000 as unexplained credits being share capital.

2. During assessment proceedings, the Assessing Officer noted new share capital of Rs. 12,00,000 received from six persons whose genuineness was doubted. The Assessing Officer added back the amount to the total income of the assessee as the source of credits remained unverifiable. The CIT(A) deleted the additions, which was then challenged before the Tribunal. The Tribunal dismissed the appeal based on the decision in CIT v. Lovely Exports(P) Ltd., stating that share application money could not be regarded as undisclosed income of the Company. The Revenue appealed this decision.

3. The High Court found no infirmity in the Tribunal's approach, citing the Apex Court's decision. The Court upheld the Tribunal's order, stating that the issue had been materially decided and required no further consideration. The Tax Appeal was dismissed.