CIT v. Lovely Exports (P) Ltd.

216 CTR 195Supreme Court of India2008#57 most cited

What is CIT v. Lovely Exports (P) Ltd. authority for?

If an assessee company receives share application money from alleged bogus shareholders and provides their details to the Assessing Officer, no addition can be made under Section 68 in the company's hands; the Department must proceed against the shareholders by reopening their individual assessments.

854

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2008 to 2026.

Also referred to as

CIT v. Lovely Exports (P) Ltd. · Section 68 · share application money · bogus shareholders · creditworthiness of creditor · genuineness of transaction · addition u/s 68 · reopening assessments of shareholders · 216 CTR 195 · Supreme Court 2008

Sections most often in play

Section 68Section 133(6)Section 143(3)Section 147Section 131Section 148Section 143(2)Section 153A

Issues it is cited on

creditworthiness of the creditorsource of sourceshare capital and share premiumshare application moneypaper companyretracted statementaddition u/s 68addition under section 68genuineness of the transactionentry operatoraccommodation entrysection 133(6)

Judgments citing CIT v. Lovely Exports (P) Ltd.

Kainya & Associates P.Ltd, Mumbai vs. DCIT Cen Cir 22, Mumbai

The appeal of the assessee is allowed

ITA 6300/MUM/2014[2006-07]Status: DisposedITAT Mumbai02 Jan 2017AY 2006-07

Bench: Shri C.N. Prasad, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं./I.T.A. No. 6300/Mum/2014 ("नधा"रण वष" / Assessment Year: 2006-07)

For Appellant: Shri Morya Pratap, DR
Section 131Section 132Section 133ASection 143(3)Section 68

…en placed on following judgments to support various contentions:- i. Andaman Timber Industries Vs CCE 2015 281 CTR 214 (Apex court judgment to contend that violation of natural justice can result into nullity of order) ii CIT Vs. Lovely Exports Pvt. Ltd. 2008 216 CTR 195 (Apex court judgment to contend that share application money cannot be regarded as undisclosed income of the assessee company u/s 68 iii CIT V K.C.Pipes Pvt Ltd. 2016 386 ITR 532 (P & H High Court to contend that no addition is warranted when shares are actually allotted) iv DCIT Vs Rohini Builders 2002 256 ITR 360 (Gujarat High court to contend…

M/S. Khatri Projects Pvt. Ltd., Delhi vs. ITO, Delhi

In the result, the appeal filed by the assessee is allowed

ITA 4353/DEL/2016[2007-08]Status: DisposedITAT Delhi16 Dec 2016AY 2007-08

Bench: Sh. N. K. Sainiita No. 4353/Del/2016 : Asstt. Year : 2007-08 M/S Khatri Projects Pvt. Ltd., Vs Income Tax Officer, A-2/106, Sector-16, Rohini, Ward-5(2), Delhi-110085 Delhi (Appellant) (Respondent) Pan No. Aacck7376A Assessee By : Sh. Vivek Bansal, Adv. Revenue By : Sh. Rajesh Kumar, Sr. Dr Date Of Hearing : 19.10.2016 Date Of Pronouncement : 16.12.2016 Order This Is An Appeal By The Assessee Against The Order Dated 30.05.2016 Of Ld. Cit(A)-36, New Delhi.

For Appellant: Sh. Vivek Bansal, AdvFor Respondent: Sh. Rajesh Kumar, Sr. DR
Section 139(1)Section 148Section 68

…it is argued that the Share application money so received should not be regarded as undisclosed income of the Assessee Company reliance is also placed on the Judgement of Supreme court of India ( Copy enclosed) in the matter of CIT Vs Lovely Exports Pvt. Ltd. 216 CTR 195 wherein while dismissing the Special Leave Petition the Apex court observed as under "If share application money is received by assessee-company from alleged bogus shareholders, whose names are given to 24 Khatri Projects Pvt. Ltd. Assessing Officer, then Department is free to proceed to reopen their individual assessments in accordance with law…

M/S. Mehta Realtors Pvt. Ltd., New Delhi vs. ITO, New Delhi

In the result, the appeal of the assessee is allowed

ITA 1633/DEL/2013[2004-05]Status: DisposedITAT Delhi13 Dec 2016AY 2004-05

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

For Appellant: Sh. V.P. Gupta, AdvocateFor Respondent: Sh. Rajesh Kumar, Sr. DR
Section 133(6)Section 139Section 143(1)Section 143(2)Section 147Section 148Section 3Section 68Section 69C

…lhi. (xiii). ITO v. Reliance Marketing Pvt. Ltd. in I.T.A. No. 1310/Del/2011 dated 18.02.2015 by ITAT, Delhi Bench 'F' (xiv). Modinagar Rolls Ltd v. Addl. CIT in ITA No. 333/Del/2015 dated 07.08.2015 of ITAT, Delhi. (xv). CIT v. Lovely Exports (P) Ltd. (2008) 216 CTR 195 (SC). (xvi) CIT v Bharat Engineering & Construction Co. 83 ITR 187 (SC). (xvii).DCIT v. Esteem Towers P Ltd. 99 TTJ472 (DEL. 7 ITA No.1633/Del. 2013 5. The ld. DR, on the other hand relied on the orders of the authorities below and submitted that the ld. CIT(A) has passed a reasoned order, which requires no interference. 6. We have considere…

Kalsha Builders P.Ltd, Navi Mumbai vs. ACIT 6(2), Mumbai

In the result, appeals of the Assessee are allowed

ITA 1808/MUM/2015[2010-11]Status: DisposedITAT Mumbai05 Dec 2016AY 2010-11

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm

Section 143(3)Section 68

…gnity Securities Trading Pvt Ltd in ITA No.2157/Mum/2014:AY 2006-07 d. ITO -10(2)(1)vs. M/ s. Blue Hill Properties Pvt Ltd in ITA No.2119/Mum/2014:AY 2006-07 2.3 It was also pointed out in the case of CIT vs. M/ s. Lovely Exports (Pvt) Ltd, reported in [2008] 216 CTR 195 (SC), it was held as under:- "If the share application money is received by the assessee company from alleged bogus share holders who's name are given to the AO then the department is free to proceed to reopen their individual assessments in accordance with law but it cannot be regarded as undisclosed income of assessee company." 2.4 In this back…

Kalsha Builders P. Ltd, Navi Mumbai vs. ACIT 6(2), Mumbai

In the result, appeals of the Assessee are allowed

ITA 7643/MUM/2013[2009-10]Status: DisposedITAT Mumbai05 Dec 2016AY 2009-10

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm

Section 143(3)Section 68

…gnity Securities Trading Pvt Ltd in ITA No.2157/Mum/2014:AY 2006-07 d. ITO -10(2)(1)vs. M/ s. Blue Hill Properties Pvt Ltd in ITA No.2119/Mum/2014:AY 2006-07 2.3 It was also pointed out in the case of CIT vs. M/ s. Lovely Exports (Pvt) Ltd, reported in [2008] 216 CTR 195 (SC), it was held as under:- "If the share application money is received by the assessee company from alleged bogus share holders who's name are given to the AO then the department is free to proceed to reopen their individual assessments in accordance with law but it cannot be regarded as undisclosed income of assessee company." 2.4 In this back…

ACIT, New Delhi vs. M/S. Habitat Royale Projects Pvt. Ltd., New Delhi

In the result, the Revenue’s Appeal stands dismissed

ITA 971/DEL/2012[2009-10]Status: DisposedITAT Delhi29 Nov 2016AY 2009-10

Bench: Shri H.S. Sidhu & Shri O.P. Kant

For Appellant: Sh. Anil Kumar Gupta, CAFor Respondent: Sh. I.P.S. Bindra, CIT(DR)
Section 132Section 139Section 142(1)Section 143(2)Section 143(3)Section 68

…r goes to substantiate the identity of the share applicant and genuineness of the transaction in case of the investor. So far as the issue 5 of credit worthiness of the share subscriber company is concerned, the Hon'ble S.C. in case of Lovely Exports P. Ltd. 216 CTR 195 has held that if the share application money is received by the assessee company from alleged bogus share holders whose names are given to the AO then the department is free to proceed in their individual assessment, but it cannot be regarded as undisclosed income of the assessee company. On this issue another decision of Delhi High Court in case…

ACIT, New Delhi vs. Ms. Habitat Royale Projects Pvt. Ltd., New Delhi

In the result, the Revenue’s Appeal stands dismissed

ITA 620/DEL/2012[2008-09]Status: DisposedITAT Delhi29 Nov 2016AY 2008-09

Bench: Shri H.S. Sidhu & Shri O.P. Kant

For Appellant: Sh. Anil Kumar Gupta, CAFor Respondent: Sh. I.P.S. Bindra, CIT(DR)
Section 132Section 139Section 142(1)Section 143(2)Section 143(3)Section 68

…r goes to substantiate the identity of the share applicant and genuineness of the transaction in case of the investor. So far as the issue 5 of credit worthiness of the share subscriber company is concerned, the Hon'ble S.C. in case of Lovely Exports P. Ltd. 216 CTR 195 has held that if the share application money is received by the assessee company from alleged bogus share holders whose names are given to the AO then the department is free to proceed in their individual assessment, but it cannot be regarded as undisclosed income of the assessee company. On this issue another decision of Delhi High Court in case…

ACIT, Circle - 1, Asansol vs. Burnpur Cement Ltd., Asansol

In the result, the appeal of the revenue is dismissed

ITA 28/KOL/2012[2008-09]Status: DisposedITAT Kolkata19 Oct 2016AY 2008-09

Bench: Shri M. Balaganesh, Am & Shri K. Narasimha Chary, Jm आयकर अपील सं./Ita No.28/Kol/2012 ("नधा"रण वष" / Assessment Year :2010-2011) Acit, Circle-I, Lower Vs. Brunpur Cement Ltd., 141, Chelidanga, Asansol-4 Cement House, Saradapally, Ashok Nagar, Asansol, District-Burdwan- 713304 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aacca 1999 B .. (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से /Revenue By : Shri Niraj Kumar Cit Dr "नधा"रती क" ओर से /Assessee By : Shri S.M.Surana Advocate सुनवाई क" तार"ख / Date Of Hearing : 26/08/2016 घोषणा क" तार"ख/Date Of Pronouncement 19/10/2016 आदेश / O R D E R Per M.Balaganesh, Am This Appeal Of The Assessee Arises Out Of The Order Of Learned Cit(A), Asansol, In Appeal No.296/Cit(A)/Asl/R-I/Asl/10-11 Dated 31.10.2011 Passed Against The Order Of Assessment Framed U/S.144 Of The Income Tax Act, 1961 (Hereinafter Referred To As The ‘Act’).

For Appellant: Shri S.M.Surana AdvocateFor Respondent: Shri Niraj Kumar CIT DR
Section 144

…essment details had been submitted before the ld AO. The investment in share capital had been duly reflected in their respective balance sheets. The ld CITA placed reliance on the decision of the Hon’ble Supreme Court in the case of Lovely Exports reported in 216 CTR 195 (SC) and also on several other decisions of this tribunal and deleted the addition u/s 68 of the Act in the sum of Rs. 6,63,00,000/-. 4.4. Aggrieved, the revenue is in appeal before us on the following ground:- (Ill) Genuineness of transaction Deleted amount Rs. 6,63,00,000/- The investors had no credit worthiness of invest in the share capital…

Sh. Surinder Kumar Jain, Karnal vs. ITO, Karnal

In the result, the Appeal filed by the Assessee stands allowed

ITA 2481/DEL/2014[2009-10]Status: DisposedITAT Delhi06 Oct 2016AY 2009-10

Bench: Shri H.S. Sidhu & Shri O.P. Kant

For Appellant: Sh. Ved Jain, Adv., Sh. AshishFor Respondent: Sh. Satpal Gulati, CIT(DR)
Section 143(1)Section 143(2)Section 143(3)Section 263

…ad any doubts with regard to their credit worthiness, the revenue could always bring it to tax in the hands of the creditors and/or sub- creditors. [See CIT vs. Divine Leasing & Finance Ltd. (2008) 299 ITR 268 (Delhi) and CIT v. Lovely Exports (P) Ltd. (2008) 216 CTR 195 15. In view of the legal position explained in the above decisions, the Court holds that as far as the present case is concerned, the Assessee has indeed discharged its onus of proving the creditworthiness and genuineness of the lender (TlL). There was no requirement in law for the Assessee to prove the genuineness and credit worthiness of the s…

M/S. A.R. Leasing Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeals of the Revenue are dismissed and the appeals of the assessees are deemed to be allowed for statistical purposes

ITA 6969/DEL/2014[2011-12]Status: DisposedITAT Delhi05 Sept 2016AY 2011-12

Bench: Shri Before Shri G.D. Agrawalbefore Shri Before Shri G.D. Agrawalg.D. Agrawal & G.D. Agrawal & And & Ms. Suchitra Kamble Ms. Suchitra Kamblems. Suchitra Kamble Ms. Suchitra Kamble

…ers “6. The onus cast upon the assessee under Section 68 of the Act to satisfy the department about the true identity of an investor, its creditworthiness and genuineness of a transaction was explained by the Supreme Court in CIT Vs. Lovely Exports (P) Ltd., 216 CTR 295. Whilst, the AO acted legitimately in enquiring into the matter, the inferences drawn by him were not justified at all in the circumstances of the case. Whether the assessee company charged a higher premium or not should not have been the subject matter of the enquiry in the first instance. Instead the issue was whether the amount invested by the…

M/S. A.R. Leasing Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeals of the Revenue are dismissed and the appeals of the assessees are deemed to be allowed for statistical purposes

ITA 6968/DEL/2014[2010-11]Status: DisposedITAT Delhi05 Sept 2016AY 2010-11

Bench: Shri Before Shri G.D. Agrawalbefore Shri Before Shri G.D. Agrawalg.D. Agrawal & G.D. Agrawal & And & Ms. Suchitra Kamble Ms. Suchitra Kamblems. Suchitra Kamble Ms. Suchitra Kamble

…ers “6. The onus cast upon the assessee under Section 68 of the Act to satisfy the department about the true identity of an investor, its creditworthiness and genuineness of a transaction was explained by the Supreme Court in CIT Vs. Lovely Exports (P) Ltd., 216 CTR 295. Whilst, the AO acted legitimately in enquiring into the matter, the inferences drawn by him were not justified at all in the circumstances of the case. Whether the assessee company charged a higher premium or not should not have been the subject matter of the enquiry in the first instance. Instead the issue was whether the amount invested by the…

DCIT, New Delhi vs. M/S. Anshika Investment Pvt. Ltd., New Delhi

In the result, the appeals of the Revenue are dismissed and the appeals of the assessees are deemed to be allowed for statistical purposes

ITA 3440/DEL/2013[2009-10]Status: DisposedITAT Delhi05 Sept 2016AY 2009-10

Bench: Shri Before Shri G.D. Agrawalbefore Shri Before Shri G.D. Agrawalg.D. Agrawal & G.D. Agrawal & And & Ms. Suchitra Kamble Ms. Suchitra Kamblems. Suchitra Kamble Ms. Suchitra Kamble

…ers “6. The onus cast upon the assessee under Section 68 of the Act to satisfy the department about the true identity of an investor, its creditworthiness and genuineness of a transaction was explained by the Supreme Court in CIT Vs. Lovely Exports (P) Ltd., 216 CTR 295. Whilst, the AO acted legitimately in enquiring into the matter, the inferences drawn by him were not justified at all in the circumstances of the case. Whether the assessee company charged a higher premium or not should not have been the subject matter of the enquiry in the first instance. Instead the issue was whether the amount invested by the…

DCIT, New Delhi vs. M/S A.R. Leasing Pvt. Ltd., New Delhi

In the result, the appeals of the Revenue are dismissed and the appeals of the assessees are deemed to be allowed for statistical purposes

ITA 3438/DEL/2013[2009-10]Status: DisposedITAT Delhi05 Sept 2016AY 2009-10

Bench: Shri Before Shri G.D. Agrawalbefore Shri Before Shri G.D. Agrawalg.D. Agrawal & G.D. Agrawal & And & Ms. Suchitra Kamble Ms. Suchitra Kamblems. Suchitra Kamble Ms. Suchitra Kamble

…ers “6. The onus cast upon the assessee under Section 68 of the Act to satisfy the department about the true identity of an investor, its creditworthiness and genuineness of a transaction was explained by the Supreme Court in CIT Vs. Lovely Exports (P) Ltd., 216 CTR 295. Whilst, the AO acted legitimately in enquiring into the matter, the inferences drawn by him were not justified at all in the circumstances of the case. Whether the assessee company charged a higher premium or not should not have been the subject matter of the enquiry in the first instance. Instead the issue was whether the amount invested by the…

A.R. Leasing Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeals of the Revenue are dismissed and the appeals of the assessees are deemed to be allowed for statistical purposes

ITA 2263/DEL/2013[2009-10]Status: DisposedITAT Delhi05 Sept 2016AY 2009-10

Bench: Shri Before Shri G.D. Agrawalbefore Shri Before Shri G.D. Agrawalg.D. Agrawal & G.D. Agrawal & And & Ms. Suchitra Kamble Ms. Suchitra Kamblems. Suchitra Kamble Ms. Suchitra Kamble

…ers “6. The onus cast upon the assessee under Section 68 of the Act to satisfy the department about the true identity of an investor, its creditworthiness and genuineness of a transaction was explained by the Supreme Court in CIT Vs. Lovely Exports (P) Ltd., 216 CTR 295. Whilst, the AO acted legitimately in enquiring into the matter, the inferences drawn by him were not justified at all in the circumstances of the case. Whether the assessee company charged a higher premium or not should not have been the subject matter of the enquiry in the first instance. Instead the issue was whether the amount invested by the…

Anshika Investment Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeals of the Revenue are dismissed and the appeals of the assessees are deemed to be allowed for statistical purposes

ITA 2262/DEL/2013[2009-10]Status: DisposedITAT Delhi05 Sept 2016AY 2009-10

Bench: Shri Before Shri G.D. Agrawalbefore Shri Before Shri G.D. Agrawalg.D. Agrawal & G.D. Agrawal & And & Ms. Suchitra Kamble Ms. Suchitra Kamblems. Suchitra Kamble Ms. Suchitra Kamble

…ers “6. The onus cast upon the assessee under Section 68 of the Act to satisfy the department about the true identity of an investor, its creditworthiness and genuineness of a transaction was explained by the Supreme Court in CIT Vs. Lovely Exports (P) Ltd., 216 CTR 295. Whilst, the AO acted legitimately in enquiring into the matter, the inferences drawn by him were not justified at all in the circumstances of the case. Whether the assessee company charged a higher premium or not should not have been the subject matter of the enquiry in the first instance. Instead the issue was whether the amount invested by the…

M/S. U.S. Food (P) Ltd., Uttar Pradesh vs. Addl. CIT, Moradabad

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 3266/DEL/2013[2003-04]Status: DisposedITAT Delhi29 Jun 2016AY 2003-04

Bench: : Shri C.M. Garg & Shri L.P. Sahu

For Appellant: Sh. K. Sampath, AdvocateFor Respondent: Ms. Anima Baranwal, Sr. DR
Section 143(3)Section 68

…income of the assessee vide assessment u/s. 143(3) of the IT Act. The assessee carried the matter in appeal before the ld. CIT(A). The ld. CIT(A) confirmed the addition after distinguishing the decision relied on by the assessee in the case of Lovely Exports (216 CTR 195)(SC) and relying upon the decision of Hon’ble Delhi High Court in the case of Nova Promoters and Finlease (P) Ltd., 342 ITR 169 (Del.). The ld. CIT(A) also observed that the said share applicants are persons with no history of paying taxes. They have no PAN and 3 ITA No.3266/Del./2013 apparently, the onus cast on the assessee company to prove th…

G.L. Constructions P.Ltd, Mumbai vs. DCIT 8(1) Or DCIT City 8, Mumbai

In the result, appeal of assessee is allowed in part, in terms indicated hereinabove

ITA 2269/MUM/2015[2010-11]Status: DisposedITAT Mumbai22 Jun 2016AY 2010-11
For Appellant: Shri N.R.Agrawal & Pavan VedFor Respondent: Ms. Anupama Shukla
Section 131Section 133ASection 133A(6)Section 143(3)

…t to prove the identity of the share applicants or share holders & nothing further as per the following Supreme Court and High Court judgements which are binding in nature. a) CIT v/s Stallar Investment Ltd. 164 CTR 287( SC) b) CIT v/s Lovely Exports (P) Ltd. 216 CTR 195 (SC), 6 DTR 308 SLP dismissed 319 ITR (St 5) c) CIT v/s Gujrat Heavy Chemicals Ltd. 256 ITR 795 (SC) d) CIT v/s Dwarikadish Investment Ltd. 167 Taxman 321 (Del) S.C dismissed SLP 314 ITR 3 e) CIT v/s Creative World Telefilms Ltd 333 ITR 100 (Bombay.) Page No. 242 to 243 f) CIT v/s Tania Investment 322 ITR 394 (Born) Page No. 244 to 245 g) Recent…

ITO, New Delhi vs. M/S. Laxman Industrial Resources Ltd., New Delhi

In the result, the appeal of the assessee is allowed granting relief of Rs

ITA 647/DEL/2010[2002-03]Status: DisposedITAT Delhi20 Jun 2016AY 2002-03

Bench: Shri H.S. Sidhu & Shri J.S. Reddy

For Appellant: Dr. Rakesh Gupta, & Somil Aggarwal, AdvsFor Respondent: Sh. T. James Singson, Sr. DR
Section 142(1)Section 143(1)Section 144Section 148Section 271(1)(c)Section 68

…9) 26 DTR (Del.) 358; and v) Bhav Shakti Steel Mines (P) Ltd. vs. CrT (2009) 179 Taxman 25, wherein the Hon’ble Delhi High Court has observed as under:- "In any event we also note that the Supreme Court in the case of CIT v. Lovely Exports (P.) Ltd. [2008] 216 CTR 195 considered the question as to whether the share application money can be regarded as undisclosed income under section 68 of the Income-tax Act, 1961. The Supreme Court dismissing the SLP observed that if the share money is received by the assessee company from alleged bogus shareholders whose names are given to the Assessing Officer, then th…

ITO, New Delhi vs. M/S. Laxman Industrial Resources Ltd., New Delhi

In the result, the appeal of the assessee is allowed granting relief of Rs

ITA 306/DEL/2010[2002-03]Status: DisposedITAT Delhi20 Jun 2016AY 2002-03

Bench: Shri H.S. Sidhu & Shri J.S. Reddy

For Appellant: Dr. Rakesh Gupta, & Somil Aggarwal, AdvsFor Respondent: Sh. T. James Singson, Sr. DR
Section 142(1)Section 143(1)Section 144Section 148Section 271(1)(c)Section 68

…9) 26 DTR (Del.) 358; and v) Bhav Shakti Steel Mines (P) Ltd. vs. CrT (2009) 179 Taxman 25, wherein the Hon’ble Delhi High Court has observed as under:- "In any event we also note that the Supreme Court in the case of CIT v. Lovely Exports (P.) Ltd. [2008] 216 CTR 195 considered the question as to whether the share application money can be regarded as undisclosed income under section 68 of the Income-tax Act, 1961. The Supreme Court dismissing the SLP observed that if the share money is received by the assessee company from alleged bogus shareholders whose names are given to the Assessing Officer, then th…

Chitwan Developers P. Ltd, Raigad vs. ITO 6(2)(1), Mumbai

Accordingly the appeal filed by the assessee is hereby allowed for statistical purpose

ITA 4897/MUM/2013[2009-10]Status: DisposedITAT Mumbai15 Jun 2016AY 2009-10

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.4897/M/13 ("नधा"रण वष" / Assessment Year: 2009-10) M/S. Chitwan Developers Income Tax Officer 6(2)(1) बनाम/ Private Limited Aaykar Bhawan, Vs. A-9/2, Midc Taloja Mumbai - 400020 Industrial Estate, Taloja Raigarh – 410208 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaccc7160J

For Appellant: Shri Ronak DoshiFor Respondent: Shri Ashish Heliwal
Section 131Section 143(3)Section 68

…of the Act wrongly and illegally. It is also argued that the share application money cannot be treated as unexplained cash credit on account of assessee even after purchase by bogus shareholders in view of the law settled in CIT Vs. Lovely Exports (P.) Ltd. (216 CTR 195) (SC) and CIT Vs. Creative World Telefilms Ltd. (333 ITR 100) (Bom.)(HC) and CIT Vs. Steller Investment Ltd. (251 ITR 263) (SC). It is also argued that the assessee have established the identity of the share applicants and therefore in the said circumstances the said amount is not required to be added towards taxable income of the assessee, in vi…