Share money from bogus shareholders can be undisclosed income under Income Tax Act

The SC Order in 2008 (1) TMI 575 held that share money from alleged bogus shareholders can be treated as undisclosed income under Section 68 of the Income Tax Act, 1961. The court allowed the Department to re-open individual assessments in such cases.

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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.

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