2010 (9) TMI 119

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... f Act. - 1303/2010 - - - Dated:- 7-9-2010 - CORAM : HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE MANMOHAN Mr. Abhishek Maratha, Advocate MANMOHAN, J: 1. The present appeal has been filed under Section 260A of the Income Tax Act,1961 (hereinafter referred to as "Act") challenging the order dated 04th September, 2009 passed by the Income Tax Appellate Tribunal (in short "Tribu .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... tax assessees holding valid Permanent Account Number (PAN) and the share application money had been paid by way of cheques. In fact, the CIT(A) in its order has observed as under:- "9. I have considered the written submission of the appellant, gone through the case laws relied upon and also gone through the assessment order. After considering the entire material, it is seen that the assessee sub .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ctions. The A.O. has not doubted the fact that the entire amount has been received through cheques and these parties were assessed with the Income Tax department. Therefore before proceeding to make addition with regard to share application money the AO was required to discharge his burden as laid upon him under the law by bringing some material on record to disbelieve the claim of the assessee. M .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... eholders and copies of audited balance sheets of those companies." xxx xxx xxx 11. From the ratio of the above decisions (supra), it is clear that even in the case of private limited company, if the share application money is received by the assessee company from the alleged bogus shareholders, whose names are given to the Assessing Officer, it cannot be regarded as undisclosed income of the a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... rtment is free to proceed to reopen their individual assessments in accordance with law. Hence, we find no infirmity with the impugned judgment……" 6. Keeping in view the aforesaid mandate of law and the concurrent findings of fact arrived at by the two authorities below, the share application money cannot be regarded as undisclosed income of assessee under Section 68 of Act. 7. Accordingly, .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X