TaxTMI 
TaxTMI 
2011 (9) TMI 958
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....0 is an appeal filed by the Revenue against the order of the learned CIT(Appeals), Salem in ITA No. 56/08-09 dated 30-04-2010 for the assessment year 2004-05 in the case of Shri R. Thangavelu and ITA No. 1111/Mds/2010 is an appeal filed by the Revenue against the order of the learned CIT(Appeals), Salem in ITA No. 74/08-09 dated 290-04-2010 for the assessment year 2004-05 in the case of Shri P. S. Sundaram. As the issues in all the three appeals are inter-connected, the three appeals are disposed of by this common order. 2. Shri K.E.B. Rengarajan, Jr. Standing Counsel represented on behalf of the Revenue. Shri S. Sridhar, Advocate represented on behalf of the assessee, M/s. Victory Spinning Mills Ltd. and Shri G. Bhaskar, Advocate represen....
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....in 216 CTR 195) wherein it had been categorically held that if the share application money is received by the assessee company from alleged bogus shareholders, whose names are given to the Assessing Officer, then the department is free to proceed to re-open the individual assessments in accordance with law and the same cannot be treated as the undisclosed income of the assessee company. 5. The learned Jr. Standing Counsel placed before us detailed paper book consisting of 210 pages containing the paying-in-slips as also copies of the Manager's Cheques, Demand Drafts and Pay Orders in respect of the various share applications. It was the submission that all the applications submitted to the bank were filled and signed by the same person and....
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....pplication were found in the course of search in the cases of Shri R. Thangavelu and Shri P. S. Sundaram. Out of the 181 share applicants, 129 had appeared when summons were issued to them. In any case, the names and identity of the share applicants are clearly available. Once this is so, in view of the decision of the Hon'ble Supreme Court in the case of CIT v. Lovely Exports Pvt. Ltd., referred to supra, the share application money cannot be treated as the undisclosed income of the assessee and the Revenue is free to proceed to re-open the individual assessments of the alleged share applicants in accordance with law. In the circumstances, the appeal of the Revenue in ITA No. 2098/Mds/2010 stands dismissed. 8. In regard to the appeals....