2010 (9) TMI 143

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.... J: 1. The present appeal has been filed under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as "Act, 1961") challenging the order dated 15th May, 2009 passed by the Income Tax Appellate Tribunal (for brevity "Tribunal") in ITA No. 800/Del/2009 for the Assessment Year 2004-05. 2. Mr. Sanjeev Sabharwal, learned senior standing counsel for the Revenue submitted that the Tri....

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....l these evidences have proved the identity of all the shareholders. Once the identity of the share subscriber is established, no addition can be made in the hands of the appellant company even if the shareholders are found to be bogus……. Rival contentions have carefully been considered. After considering the rival submissions I find a substantial support in the contention of the ld. A.R. of....

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.... by the appellant in the form of the share application has come from its own sources. This ratio of decision is applicable both in the cases of Public Limited Company and Private Limited Company in view of the latest decisions, as discussed above. Therefore, I have no hesitation to direct the Assessing Officer to delete the addition of Rs. 49,00,000/- (Rs. 39,00,000/- as per rectification order) w....

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....case of CIT Vs. Lovely Exports (P) Ltd. (supra) the observations of Hon'ble Supreme Court are as under:- "2. Can the amount of share money be regarded as undisclosed income under s. 68 of IT Act, 1961? We find no merit in this 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 g....