TaxTMI 
TaxTMI 
2010 (5) TMI 65
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.... whereby the appeal filed by the Revenue, being ITA No.3290/Del/2008, against the order of the Commissioner of Income Tax (Appeals), for the Assessment Year 2004-05 was dismissed by it. 2. During the assessment year in question, the assessee company received share application money amounting to Rs 44 lakhs from 12 private limited companies. The assessee company filed income tax return declaring income of Rs 2,20,880/- for the year in question. The case was initially processed under Section 143(1) of Income Tax Act. Subsequently, on receipt of information that the assessee company had received accommodation entries, notice under Section 148 of Income Tax Act was issued. During the course of assessment, when asked to prove the id....
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....oted by the Income Tax Appellate Tribunal that all the applicants were Private Ltd. Companies, whose new as well as old addresses, were provided by the assessee during the course of the assessment proceedings. It was further noted that besides filing confirmation from the applicants, copies of Share Application Money, PAN card, etc., were also filed. The Tribunal was of the view that in these circumstances, it cannot be said that the identity of the share applicants did not stand established. Relying upon the decision of the Supreme Court in the case of CIT vs. Lovely Exports (P) Ltd., 216 CTR 198, the Tribunal declined to interfere with the order passed by the Commissioner of Income Tax (Appeals). 5. The issue involved in this appeal came....
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....eferred decision of this Court was dismissed by the Supreme Court vide its decision reported vide 2008 (216) CTR 195 which inter alia reads as under: "Can the amount of share money be regarded as undisclosed income under Section 68 of IT Act, 1961? We find no in Special Leave Petition for the simple reason 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 reopen their individual assessments in accordance with law. Hence, no infirmity is found with the impugned judgment. 7. It has not been disputed before us that the share application money was received by the assessee company by way of account payee cheques, th....
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....If the Assessing Officer so desired, the genuineness of the PAN cards and PAN details could easily have been verified by him from the record available with the Department. The assessee company also furnished written confirmation from the applicant companies. All the share applicants were duly served with the notices under Section 133(6) of the Act. In these circumstances, the finding of Commissioner of Income Tax (Appeals) and Income Tax Appellate Tribunal that the identity of the subscribers stood duly established from the documents produced by the assessee, cannot be said to be perverse and does not call for interference by this Court. 9. The finding of fact recorded by the Tribunal, which is the final fact finding authority, cannot be s....