TaxTMI 
TaxTMI 
2016 (6) TMI 1390
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....12.2006, the following substantial question of law were framed by the Court for consideration :- "Whether on the facts and in the circumstances of the case, the law as stated by the Tribunal in regard to the onus on the company in respect of share application money is correctly stated?" 3. The brief facts of the case are as under :- The appellant is a company engaged in the business of fabrication and erection of transmission towers. One of the shareholders - Smt. Manjulaben Dalwadi of Nadiad applied for shares of the company and the appellant received Rs. 5,00,000/= towards share application money on different dates. According to the Assessing Officer, this source of Rs. 5,00,000/= could not be explained by Smt. Manjulaben and therefore....
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....hat 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, we find no infirmity with the impugned judgment. 3. Subject to the above, Special Leave Petition is dismissed." It is further submitted that the above principle has been followed by this Court in various decisions and therefore, the question in this Appeal is required to be answered in favour of the Assessee. 5. Learned Counsel for the respondent Mr. K.M. Parikh has drawn the attention of the Court to the findings of the CIT (Appeals) and also of the Income Tax Tribunal and has contended that no ....
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....26/2011 dated 27.06.2012. It is also necessary to refer to reproduce hereunder paragraph 9 of the decision of this Court in the case of Asstt. CIT v. Tarujyot Investment Ltd. rendered in Tax Appeal No.457/1999 dated 09.08.2010 which reads as under :- "9. Thus, from the facts emerging on record, it is apparent that during the period immediately after its incorporation the assessee company had practically done no business so as to generate income of Rs. 50 Lakhs. The Assessing Officer on inquiry has found many of the alleged shareholders to be benamidars or having not invested the money, but at the same time, he has traced out the source of money to some specific persons, who were the real investors. The Supreme Court has in the case of Com....