2012 (10) TMI 602

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..... Therefore, the amount received by assessee as share application money cannot be regarded as undisclosed income of the assessee. Issue in favour of assessee
SHRI ABRAHAM P.GEORGE AND SHRI VIKAS AWASTHY, JJ. Appellant by : Mr. Vikramaditya, JCIT ORDER PER VIKAS AWASTHY, JUDICIAL MEMBER: The present set of appeals i.e. ITA Nos. 394/Mds/2012 & 395/Mds/2012 have been filed by the Revenue impugning the order of the CIT(A)-I, Coimbatore dated 29.11.2011 & 30.11.2011 respectively. 2. Both these appeals have been filed with a delay of 13 days. Affidavit for condonation of delay, citing reasons for the delay have also been filed along with the appeals of the Revenue. Being satisfied with the reasons causing delay and in the interest of jus .....

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..... 271(1)(c) were also separately initiated against the assessee. Aggrieved against the orders of the Assessing Officer, the assessee challenged both the orders i.e. order dated 19.12.2009 under section 143(3) and order dated 28.6.2010 under section 271(1)(c) before the CIT(A) vide two separate appeals. 4. The CIT(A) vide order dated 29.11.2011 relying on the judgement of the Hon'ble Supreme Court of India in the case of CIT Vs. Lovely Exports (P) Ltd., reported as 216 CTR 195 partly allowed the appeal of the assessee and the addition made on account of share application money under section 68 was deleted by the CIT(A), whereas the amount received by the assessee on account of unsecured loans to the tune of Rs. 11,70,000/- was confirmed. The .....

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..... eived by the assessee company from alleged bogus shareholders, whose names are given to the Assessing Officer, then the Department is free to proceed to reopen their individual assessments in accordance with law." Thus, the amount received by assessee as 'share application money' cannot be regarded as undisclosed income of the assessee. Therefore, addition under section 68 of the Act cannot be made on this account. In view of our above findings, we dismiss the appeal of the Revenue in ITA No.394/Mds/2012. 7. However, it is made clear that as per the law laid down by the Hon'ble Apex Court in Lovely Exports P.Ltd.(supra) the Department is at liberty to proceed in accordance with law against the individuals/investors whose names have been g .....

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