2014 (1) TMI 1087

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..... ders, whose names are given to the AO, then the department is free to proceed to reopen their individual amounts in accordance with law, but it cannot be regarded as income of the assessee company - During the course of the assessment proceedings, the assessee made a detailed submission explaining source of the money and had furnished details of the PAN besides examining some of the shareholders o .....

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..... in proving that the so-called investors in share capital had no capacity to make these investments. 2. Whether on the facts and circumstances of the case and in law the ITAT erred in negativing order of the AO without appreciating that the AO had established that the so called investments were colourable transactions actuated by evading tax. 3. Whether on the facts and circumstances of the cas .....

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..... areholders on oath. The CIT (A) noted that all the aforesaid persons were assessed to tax and their identity had been established. The CIT (A) while deleting the addition relied upon the judgement of the Supreme Court in Lovely Exports1, where it was held as follows: "If the share application is received by the assessee from the alleged bogus shareholders, whose names are given to the AO., then .....

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