2008 (1) TMI 575 - SCH - Income Tax

Share application money - income from undisclosed sources u/s 68 - Held that that if the share application money is received by the assessee-Company from alleged bogus shareholders whose names are given to the AO then the Department is free to proceed to re-open their individual assessments in accordance with law - not to be treated as undisclosed income - Revenue SLP dismissed

Summary

The Supreme Court of India in 2008 (1) TMI 575 - SC Order dismissed a Special Leave Petition regarding whether share money can be considered undisclosed income under Section 68 of the Income Tax Act, 1961. The court stated that if share application money is received from alleged bogus shareholders, the Department can proceed to re-open their individual assessments. The Special Leave Petition was dismissed.