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 366,005 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.

Umang Boards (Mumbai), Pvt. Ltd, Jaipur vs. Ward 14(3)(1), Mumbai

ITA 6318/MUM/2024[2015-16]Status: DisposedITAT Mumbai25 Feb 2025AY 2015-16

Bench: Hon’Ble Shri Sandeep Gosain & Hon’Ble Shri Prabhash Shankar, Accountatn Member Umang Boards (Mumbai) Vs. Ito – 14(3)(1) Aayakar Bhavan, Mk Pvt Ltd Road, Mumbai – Umang House, 7-B, 400020. Bharat Mata Path, Jamna Lal Bajaj Marg, C-Scheme, Jaipur. Pan/Gir No. Aabcu0882C (Applicant) (Respondent)

Section 133(6)Section 250Section 68

…is is clearly discernible from the bank statement of SDPL. 2.16 Reliance is placed on the following judicial pronouncements, the relevant extracts of which are set out below for the sake of convenience. Supreme Court CIT vs. Lovely Exports (P) Ltd. (2008) 216 CTR 195 (SC) "If 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, but it cannot be regarded as undisclosed income of assessee company." CIT vs. Stellar Investment Ltd. [2001] 25…

ITO., Ward-16(1), Hyderabad vs. Phoenix Infraventures and Projects Private Limited, Hyderabad

In the result, the appeal filed by the revenue is dismissed

ITA 867/HYD/2024[2022-23]Status: DisposedITAT Hyderabad24 Feb 2025AY 2022-23

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon’Bleassessment Year: 2022-23 The Income Tax Officer, Vs. Phoenix Infraventures & Projects Private Limited, Ward – 16(1), Hyderabad. Hyderabad. Pan No.Aafcp5499L. (Assessee) (Respondent) Assessee By: Shri R. Mohan Kumar, Advocate Revenue By: Shri B. Bala Krishna, Cit-Dr Date Of Hearing: 24.12.2024 Date Of Pronouncement: 24.02.2025

For Appellant: Shri R. Mohan Kumar, AdvocateFor Respondent: Shri B. Bala Krishna, CIT-DR
Section 139(1)Section 68

…s Pvt. Ltd (supra) and also the decision of ITAT, Delhi in the case of Sona Electrical Company Vs. CIT reported in 152 ITR 507. The assessee has also relied upon the decision of Hon'ble Supreme Court in the 10 case of Lovely Exports Vs. CIT reported in (2008) 216 CTR 195 (SC) and also the decision in the case of CIT Vs. Orchid Industries Ltd reported in 116 Taxman.com 113 (SC). 9. We have heard both the parties, perused the material on record, and gone through the orders of the authorities below. There is no dispute with regard to the fact that the assessee company has received advances of Rs.82,40,09,978/- from…

Hilton Commodities Pvt. Ltd., Kolkata vs. ITO, Ward-5(3), Kolkata

In the result, the appeal of the revenue is dismissed

ITA 676/KOL/2024[2009-10]Status: DisposedITAT Kolkata24 Feb 2025AY 2009-10

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm Hilton Commodities Pvt. Ltd. Ito, Ward 5(3) 9/12, Lal Bazar Street, Aaykar Bhavan, P-7, Mercantile Building, Block-B, Chowringhee Square, Vs. 3Rd Floor, No.10, Kolkata-700069, West Bengal Kolkata-700001, West Bengal (Appellant) (Respondent) Pan No. Aacch1011P Assessee By : Shri Soumitra Choudhury, Ar Revenue By : Shri S Datta, Cit Dr Date Of Hearing: 08.01.2025 Date Of Pronouncement : 24.02.2025

For Appellant: Shri Soumitra Choudhury, ARFor Respondent: Shri S Datta, CIT DR
Section 131Section 143(1)Section 143(2)Section 144Section 147Section 148Section 14ASection 263Section 68

…icer invoked the provisions under Section 68/69 of the Income Tax Act and made addition of Rs.24,00,000/-. On appeal the Learned CIT (A) by following the decision of the Supreme Court in the case of Cl. T. vs. M/s. Lovely Exports Pvt. Ltd., reported in (2008) 216 CTR 195 allowed the appeal by holding -that share capital/premium of Rs. 24,00,000/- received from the investors was not liable to be treated under Section 68 as unexplained credits and it should not be taxed in the hands of the appellant company. As indicated earlier, the Tribunal below dismissed the appeal filed by the Revenue. After hearing the learne…

Assistant Commissioner of Income Tax Central Circle3-(4), Hyderabad vs. Aarthik Greentech Solutions Private Limited, Hyderabad

In the result, appeal filed by the Revenue is dismissed

ITA 32/HYD/2021[2014-15]Status: DisposedITAT Hyderabad21 Feb 2025AY 2014-15

Bench: Shri Manjunatha G. & Shri K.Narasimha Charyआ.अपी.सं /Ita No.32/Hyd/2021 (निर्धारण वर्ा/Assessment Year: 2014-15) Asst.Commissioner Of Vs. Aarthik Greentech Income Tax Solutions Pvt.Ltd. Central Circle-3(4) Hyderabad Hyderabad [Pan : Aalca6887D] आ.अपी.सं /Ita No.33/Hyd/2021 (निर्धारण वर्ा/Assessment Year: 2014-15) Asst.Commissioner Of Vs. Aarthik Infra Projects Income Tax Pvt.Ltd. Central Circle-3(4) Hyderabad Hyderabad [Pan : Aahca0719N] (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri P.Murali Mohan Rao,Ar रधजस् व द्वधरध/Revenue By: Ms.M.Narmada, Cit-Dr सुिवधई की तधरीख/Date Of Hearing: 19/12/2024 घोर्णध की तधरीख/Date Of 21/02/2025 Pronouncement: आदेश / Order Per. Manjunatha G., A.M: These Appeals Filed By The Revenue Are Directed Against Order Dated 11.09.2020 Of The Commissioner Of Income Tax (Appeals) [“Ld.Cit(A)”]-11, Hyderabad Pertaining To A.Y.2014-15. Since, Facts Are Identical & Issues Are Common, For The Sake Of Aarthik Greentech Solutions Pvt. Ltd. & Aarthik Infra Projects Pvt.Ltd.

For Appellant: Shri P.Murali Mohan Rao,ARFor Respondent: Ms.M.Narmada, CIT-DR
Section 132Section 143(1)Section 153C

…आयकर अपीलीय अधिकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘B’ Bench, Hyderabad Before Shri Manjunatha G., Accountant Member and Shri K.Narasimha Chary, Judicial Member आ.अपी.सं /ITA No.32/Hyd/2021 (निर्धारण वर्ा/Assessment Year: 2014-15) Asst.Commissioner of Vs. Aarthik Greentech Income Tax Solutions Pvt.Ltd. Central Circle-3(4) Hyderabad Hyderabad [PAN : AALCA6887D] आ.अपी.सं /ITA No.33/Hyd/2021 (निर्धारण वर्ा/Assessment Year: 2014-15) Asst.Commissioner of Vs. Aarthik Infra Projects Income Tax Pvt.Ltd. Central Circle-3(4) Hyderabad Hyderabad [PAN : AAHCA0719N] (Appellant) (Respondent) निर्…

Assistant Commissioner of Income Tax, Central Circle 3(4), Hyderabad vs. Zainab Investments Private Limited, Hyderabad

ITA 70/HYD/2021[2018-19]Status: DisposedITAT Hyderabad20 Feb 2025AY 2018-19

Bench: Shri Manjunatha G. & Shri K.Narsimha Charyआ.अपी. सं/Ita No.66/Hyd/2021 To 69/Hyd/2021 (निर्धारण वर्ष/A.Y: 2011-12, 2013-14, 2015-16 & 2016-17) Asst.Commissioner Of Income Tax Central Circle-3(4) Hyderabad (Appellant) Vs. M/S Zainab Investments Pvt. Ltd. Secunderabad [Pan : Aaacz4043R] (Respondent) आ.अपी.सं /Ita No.70/Hyd/2021 (निर्धारण वर्ष/A.Y: 2018-19) Asst.Commissioner Of Income Tax Central Circle-3(4) Hyderabad (Appellant) Vs. M/S Zainab Investments Pvt. Ltd. Secunderabad [Pan : Aaacz4043R] (Respondent) आ.अपी.सं /Ita No.111/Hyd/2021 (निर्धारण वर्ष/A.Y: 2018-19) M/S Zainab Investments Pvt. Ltd. Secunderabad [Pan : Aaacz4043R] (Appellant) Vs. Asst.Commissioner Of Income Tax Central Circle-3(4) Hyderabad (Respondent) निर्धारिती द्वारा / Assessee By: Shri P.Murali Mohan Rao,Ar राजस्व द्वारा / Revenue By: Shri Srinath Sadanala, Dr सुनवाई की तारीख / Date Of Hearing: 26/11/2024 घोषणा की तारीख / Date Of 20/02/2025 Pronouncement: 2

For Appellant: Shri P.Murali Mohan Rao,ARFor Respondent: Shri Srinath Sadanala, DR
Section 132Section 143(1)Section 153ASection 68

…ment of few persons of investor companies, without confronting those statements to the assessee for its rebuttal and cross-examination. Further, it is well settled principle of law by the decision of Hon'ble Supreme Court in the case of CIT Vs.Lovely Exports, 216 CTR 195 (SC), where it has been clearly 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 reopen their individual assessment, in accordance with law but this amount of share money cannot be regarded as undi…

Assiatant Commissioner of Income Tax, Central Circle 3(4), Hyderabad vs. Zainab Investments Private Limited, Hyderabad

In the result, appeals filed by the Revenue and the assessee for the A

ITA 69/HYD/2021[2016-17]Status: DisposedITAT Hyderabad20 Feb 2025AY 2016-17

Bench: Shri Manjunatha G. & Shri K.Narsimha Charyआ.अपी.सं /Ita No.66/Hyd/2021 To 69/Hyd/2021 (निर्धारण वर्ा/A.Y: 2011-12, 2013-14, 2015-16 & 2016-17) Asst.Commissioner Of Vs. M/S Zainab Income Tax Investments Pvt. Ltd. Central Circle-3(4) Secunderabad Hyderabad [Pan : Aaacz4043R] (Appellant) (Respondent) आ.अपी.सं /Ita No.70/Hyd/2021 (निर्धारण वर्ा/A.Y: 2018-19) Asst.Commissioner Of Vs. M/S Zainab Income Tax Investments Pvt. Ltd. Central Circle-3(4) Secunderabad Hyderabad [Pan : Aaacz4043R] (Appellant) (Respondent) आ.अपी.सं /Ita No.111/Hyd/2021 (निर्धारण वर्ा/A.Y: 2018-19) M/S Zainab Investments Vs. Asst.Commissioner Of Income Tax Pvt. Ltd. Central Circle-3(4) Secunderabad Hyderabad [Pan : Aaacz4043R] (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri P.Murali Mohan Rao,Ar रधजस् व द्वधरध/Revenue By: Shri Srinath Sadanala, Dr सुिवधई की तधरीख/Date Of Hearing: 26/11/2024 घोर्णध की तधरीख/Date Of 20/02/2025 Pronouncement:

For Appellant: Shri P.Murali Mohan Rao,ARFor Respondent: Shri Srinath Sadanala, DR
Section 132Section 143(1)Section 153A

…ment of few persons of investor companies, without confronting those statements to the assessee for its rebuttal and cross-examination. Further, it is well settled principle of law by the decision of Hon’ble Supreme Court in the case of CIT Vs.Lovely Exports, 216 CTR 195 (SC), where it has been clearly 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 reopen their individual assessment, in accordance with law but this amount of share money cannot be regarded as undi…

Assistant Commissioner of Income Tax, Central Circle 3(4), Hyderabad vs. Zainab Investments Private Limited, Hyderabad

In the result, appeals filed by the Revenue and the assessee for the A

ITA 68/HYD/2021[2015-16]Status: DisposedITAT Hyderabad20 Feb 2025AY 2015-16

Bench: Shri Manjunatha G. & Shri K.Narsimha Charyआ.अपी.सं /Ita No.66/Hyd/2021 To 69/Hyd/2021 (निर्धारण वर्ा/A.Y: 2011-12, 2013-14, 2015-16 & 2016-17) Asst.Commissioner Of Vs. M/S Zainab Income Tax Investments Pvt. Ltd. Central Circle-3(4) Secunderabad Hyderabad [Pan : Aaacz4043R] (Appellant) (Respondent) आ.अपी.सं /Ita No.70/Hyd/2021 (निर्धारण वर्ा/A.Y: 2018-19) Asst.Commissioner Of Vs. M/S Zainab Income Tax Investments Pvt. Ltd. Central Circle-3(4) Secunderabad Hyderabad [Pan : Aaacz4043R] (Appellant) (Respondent) आ.अपी.सं /Ita No.111/Hyd/2021 (निर्धारण वर्ा/A.Y: 2018-19) M/S Zainab Investments Vs. Asst.Commissioner Of Income Tax Pvt. Ltd. Central Circle-3(4) Secunderabad Hyderabad [Pan : Aaacz4043R] (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri P.Murali Mohan Rao,Ar रधजस् व द्वधरध/Revenue By: Shri Srinath Sadanala, Dr सुिवधई की तधरीख/Date Of Hearing: 26/11/2024 घोर्णध की तधरीख/Date Of 20/02/2025 Pronouncement:

For Appellant: Shri P.Murali Mohan Rao,ARFor Respondent: Shri Srinath Sadanala, DR
Section 132Section 143(1)Section 153A

…ment of few persons of investor companies, without confronting those statements to the assessee for its rebuttal and cross-examination. Further, it is well settled principle of law by the decision of Hon’ble Supreme Court in the case of CIT Vs.Lovely Exports, 216 CTR 195 (SC), where it has been clearly 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 reopen their individual assessment, in accordance with law but this amount of share money cannot be regarded as undi…

Assiatant Commissioner of Income Tax, Central Circle-3(4), Hyderabad vs. Zainab Investments Private Limited, Hyderabad

In the result, appeals filed by the Revenue and the assessee for the A

ITA 67/HYD/2021[2013-14]Status: DisposedITAT Hyderabad20 Feb 2025AY 2013-14

Bench: Shri Manjunatha G. & Shri K.Narsimha Charyआ.अपी.सं /Ita No.66/Hyd/2021 To 69/Hyd/2021 (निर्धारण वर्ा/A.Y: 2011-12, 2013-14, 2015-16 & 2016-17) Asst.Commissioner Of Vs. M/S Zainab Income Tax Investments Pvt. Ltd. Central Circle-3(4) Secunderabad Hyderabad [Pan : Aaacz4043R] (Appellant) (Respondent) आ.अपी.सं /Ita No.70/Hyd/2021 (निर्धारण वर्ा/A.Y: 2018-19) Asst.Commissioner Of Vs. M/S Zainab Income Tax Investments Pvt. Ltd. Central Circle-3(4) Secunderabad Hyderabad [Pan : Aaacz4043R] (Appellant) (Respondent) आ.अपी.सं /Ita No.111/Hyd/2021 (निर्धारण वर्ा/A.Y: 2018-19) M/S Zainab Investments Vs. Asst.Commissioner Of Income Tax Pvt. Ltd. Central Circle-3(4) Secunderabad Hyderabad [Pan : Aaacz4043R] (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri P.Murali Mohan Rao,Ar रधजस् व द्वधरध/Revenue By: Shri Srinath Sadanala, Dr सुिवधई की तधरीख/Date Of Hearing: 26/11/2024 घोर्णध की तधरीख/Date Of 20/02/2025 Pronouncement:

For Appellant: Shri P.Murali Mohan Rao,ARFor Respondent: Shri Srinath Sadanala, DR
Section 132Section 143(1)Section 153A

…ment of few persons of investor companies, without confronting those statements to the assessee for its rebuttal and cross-examination. Further, it is well settled principle of law by the decision of Hon’ble Supreme Court in the case of CIT Vs.Lovely Exports, 216 CTR 195 (SC), where it has been clearly 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 reopen their individual assessment, in accordance with law but this amount of share money cannot be regarded as undi…

Assistant Commissioner of Income Tax, Central Circle-3(4), Hyderabad vs. Zainab Investments Private Limited, Secunderabad

ITA 66/HYD/2021[2011-12]Status: DisposedITAT Hyderabad20 Feb 2025AY 2011-12

Bench: Shri Manjunatha G. & Shri K.Narsimha Charyआ.अपी. सं/Ita No.66/Hyd/2021 To 69/Hyd/2021 (निर्धारण वर्ष/A.Y: 2011-12, 2013-14, 2015-16 & 2016-17) Asst.Commissioner Of Income Tax Central Circle-3(4) Hyderabad Vs. M/S Zainab Investments Pvt. Ltd. Secunderabad [Pan : Aaacz4043R] (Appellant) (Respondent) आ.अपी.सं /Ita No.70/Hyd/2021 (निर्धारण वर्ष/A.Y: 2018-19) Asst.Commissioner Of Income Tax Central Circle-3(4) Hyderabad Vs. M/S Zainab Investments Pvt. Ltd. Secunderabad [Pan : Aaacz4043R] (Appellant) (Respondent) आ.अपी.सं /Ita No.111/Hyd/2021 (निर्धारण वर्ष/A.Y: 2018-19) M/S Zainab Investments Pvt. Ltd. Secunderabad [Pan : Aaacz4043R] Vs. Asst.Commissioner Of Income Tax Central Circle-3(4) Hyderabad (Appellant) (Respondent) निर्धारिती द्वारा / Assessee By: Shri P.Murali Mohan Rao,Ar राजस्व द्वारा / Revenue By: Shri Srinath Sadanala, Dr सुनवाई की तारीख / Date Of Hearing: |26/11/2024 घोषणा की तारीख / Date Of Pronouncement: 20/02/2025

For Appellant: Shri P.Murali Mohan Rao,ARFor Respondent: Shri Srinath Sadanala, DR
Section 132Section 143(1)Section 153ASection 68

…ment of few persons of investor companies, without confronting those statements to the assessee for its rebuttal and cross-examination. Further, it is well settled principle of law by the decision of Hon'ble Supreme Court in the case of CIT Vs.Lovely Exports, 216 CTR 195 (SC), where it has been clearly 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 reopen their individual assessment, in accordance with law but this amount of share money cannot be regarded as undi…

Zainab Investments Private Limited, Secunderabad vs. Deputy Commissioner of Income Tax, Central Circle -3(4), Hyderabad

In the result, appeals filed by the Revenue and the assessee for the A

ITA 111/HYD/2021[2018-19]Status: DisposedITAT Hyderabad20 Feb 2025AY 2018-19

Bench: Shri Manjunatha G. & Shri K.Narsimha Charyआ.अपी.सं /Ita No.66/Hyd/2021 To 69/Hyd/2021 (निर्धारण वर्ा/A.Y: 2011-12, 2013-14, 2015-16 & 2016-17) Asst.Commissioner Of Vs. M/S Zainab Income Tax Investments Pvt. Ltd. Central Circle-3(4) Secunderabad Hyderabad [Pan : Aaacz4043R] (Appellant) (Respondent) आ.अपी.सं /Ita No.70/Hyd/2021 (निर्धारण वर्ा/A.Y: 2018-19) Asst.Commissioner Of Vs. M/S Zainab Income Tax Investments Pvt. Ltd. Central Circle-3(4) Secunderabad Hyderabad [Pan : Aaacz4043R] (Appellant) (Respondent) आ.अपी.सं /Ita No.111/Hyd/2021 (निर्धारण वर्ा/A.Y: 2018-19) M/S Zainab Investments Vs. Asst.Commissioner Of Income Tax Pvt. Ltd. Central Circle-3(4) Secunderabad Hyderabad [Pan : Aaacz4043R] (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri P.Murali Mohan Rao,Ar रधजस् व द्वधरध/Revenue By: Shri Srinath Sadanala, Dr सुिवधई की तधरीख/Date Of Hearing: 26/11/2024 घोर्णध की तधरीख/Date Of 20/02/2025 Pronouncement:

For Appellant: Shri P.Murali Mohan Rao,ARFor Respondent: Shri Srinath Sadanala, DR
Section 132Section 143(1)Section 153A

…ment of few persons of investor companies, without confronting those statements to the assessee for its rebuttal and cross-examination. Further, it is well settled principle of law by the decision of Hon’ble Supreme Court in the case of CIT Vs.Lovely Exports, 216 CTR 195 (SC), where it has been clearly 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 reopen their individual assessment, in accordance with law but this amount of share money cannot be regarded as undi…

Assistant Commissioner of Income Tax, Central Circle-3(4), Hyderabad vs. Zara Investments Private Limited, Hyderabad

In the result appeal filed by the Revenue is dismissed

ITA 65/HYD/2021[2016-17]Status: DisposedITAT Hyderabad18 Feb 2025AY 2016-17

Bench: Shri Manjunatha G. & Shri K.Narsimha Charyआ.अपी.सं /Ita No.64/Hyd/2021 & 65/Hyd/2021 (निर्धारण वर्ा/Assessment Year: 2011-12 & 2016-17) Asst.Commissioner Of Vs. M/S Zara Investments Income Tax Pvt.Ltd. Central Circle-3(4) Secunderabad Hyderabad [Pan : Aaacz4043R] (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri P.Murali Mohan Rao,Ar रधजस् व द्वधरध/Revenue By: Shri Srinath Sadanala, Dr सुिवधई की तधरीख/Date Of Hearing: 26/11/2024 घोर्णध की तधरीख/Date Of 18/02/2025 Pronouncement: आदेश / Order Per. Manjunatha G., A.M: These Appeals Filed By The Revenue Are Directed Against Order Dated 04.09.2020 Of The Commissioner Of Income Tax (Appeals) [“Ld.Cit(A)”]-11, Hyderabad Pertaining To A.Y.2011-12 & 2016-17. Since, Facts Are Identical & Issues Are Common, For The Sake Of Convenience, The Appeals Filed By The Revenue Are Being Heard Together & Are Being Disposed Off, By This Common Order. Zara Investments Pvt. Ltd.

For Appellant: Shri P.Murali Mohan Rao,ARFor Respondent: Shri Srinath Sadanala, DR
Section 132Section 143(1)Section 153A

…tor companies, without confronting those statements to the Zara Investments Pvt. Ltd. assessee for its rebuttal and cross-examination. Further, it is well settled principle of law by the decision of Hon’ble Supreme Court in the case of CIT Vs.Lovely Exports, 216 CTR 195 (SC), where it has been clearly held that if the share application money is received by the assesse company from alleged bogus shareholders, whose names are given to the Assessing Officer, then the department is free to proceed to reopen their individual assessment, in accordance with law but this amount of share money cannot be regarded as undis…

Assistant Commissioner of Income Tax, Central Circle 3(4), Hyderabad vs. Aijaz Investments &Estates Private Limited, Hyderabad

In the result, appeal filed by the Revenue is dismissed

ITA 80/HYD/2021[2014-15]Status: DisposedITAT Hyderabad17 Feb 2025AY 2014-15

Bench: Shri Manjunatha G. & Shri K.Narsimha Charyआ.अपी.सं /Ita No.78/Hyd/2021 To 80/Hyd/2021 (निर्धारण वर्ा/Assessment Year: 2011-12, 2013-14 & 2014-15) Asst.Commissioner Of Vs. M/S Aijaz Investments Income Tax & Estates Pvt.Ltd. Central Circle-3(4) Secunderabad Hyderabad [Pan : Aaica2190E] (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri P.Murali Mohan Rao,Ar रधजस् व द्वधरध/Revenue By: Shri Srinath Sadanala, Dr सुिवधई की तधरीख/Date Of Hearing: 21/11/2024 घोर्णध की तधरीख/Date Of 17/02/2025 Pronouncement: आदेश / Order Per. Manjunatha G., A.M: These Appeals Filed By The Revenue Are Directed Against Order Dated 11.09.2020 Of The Commissioner Of Income Tax (Appeals) [“Ld.Cit(A)”]-11, Hyderabad Pertaining To A.Y.2011-12, 2013-14 & 2014-15. Since, Facts Are Identical & Issues Are Common, For The Sake Of Convenience, The Appeals Filed By The Revenue Are Being Heard Together & Are Being Disposed Off By This Common Order.

For Appellant: Shri P.Murali Mohan Rao,ARFor Respondent: Shri Srinath Sadanala, DR
Section 132Section 143(1)Section 153ASection 153C

…ment of few persons of investor companies, without confronting those statements to the assessee for its rebuttal and cross-examination. Further, it is well settled principle of law by the decision of Hon’ble Supreme Court in the case of CIT Vs.Lovely Exports, 216 CTR 195 (SC), where it has been clearly held that if the share application money is received by the assesse company from alleged bogus shareholders, whose names are given to the Assessing Officer, then the department is free to proceed to reopen their individual assessment, in accordance with law but this amount of share money cannot be regarded as undis…

Assistant Commissioner of Income Tax, Central Circle 3(4), Hyderabad vs. Aijaz Investments & Estates Private Limited, Secunderabad

In the result, appeal filed by the Revenue is dismissed

ITA 79/HYD/2021[2013-14]Status: DisposedITAT Hyderabad17 Feb 2025AY 2013-14

Bench: Shri Manjunatha G. & Shri K.Narsimha Charyआ.अपी.सं /Ita No.78/Hyd/2021 To 80/Hyd/2021 (निर्धारण वर्ा/Assessment Year: 2011-12, 2013-14 & 2014-15) Asst.Commissioner Of Vs. M/S Aijaz Investments Income Tax & Estates Pvt.Ltd. Central Circle-3(4) Secunderabad Hyderabad [Pan : Aaica2190E] (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri P.Murali Mohan Rao,Ar रधजस् व द्वधरध/Revenue By: Shri Srinath Sadanala, Dr सुिवधई की तधरीख/Date Of Hearing: 21/11/2024 घोर्णध की तधरीख/Date Of 17/02/2025 Pronouncement: आदेश / Order Per. Manjunatha G., A.M: These Appeals Filed By The Revenue Are Directed Against Order Dated 11.09.2020 Of The Commissioner Of Income Tax (Appeals) [“Ld.Cit(A)”]-11, Hyderabad Pertaining To A.Y.2011-12, 2013-14 & 2014-15. Since, Facts Are Identical & Issues Are Common, For The Sake Of Convenience, The Appeals Filed By The Revenue Are Being Heard Together & Are Being Disposed Off By This Common Order.

For Appellant: Shri P.Murali Mohan Rao,ARFor Respondent: Shri Srinath Sadanala, DR
Section 132Section 143(1)Section 153ASection 153C

…ment of few persons of investor companies, without confronting those statements to the assessee for its rebuttal and cross-examination. Further, it is well settled principle of law by the decision of Hon’ble Supreme Court in the case of CIT Vs.Lovely Exports, 216 CTR 195 (SC), where it has been clearly held that if the share application money is received by the assesse company from alleged bogus shareholders, whose names are given to the Assessing Officer, then the department is free to proceed to reopen their individual assessment, in accordance with law but this amount of share money cannot be regarded as undis…

Assistant Commissioner of Income Tax, Central Circle -3(4), Hyderabad vs. Aijaz Investments & Estates Private Limited, Hyderabad

In the result, appeal filed by the Revenue is dismissed

ITA 78/HYD/2021[2011-12]Status: DisposedITAT Hyderabad17 Feb 2025AY 2011-12

Bench: Shri Manjunatha G. & Shri K.Narsimha Charyआ.अपी.सं /Ita No.78/Hyd/2021 To 80/Hyd/2021 (निर्धारण वर्ा/Assessment Year: 2011-12, 2013-14 & 2014-15) Asst.Commissioner Of Vs. M/S Aijaz Investments Income Tax & Estates Pvt.Ltd. Central Circle-3(4) Secunderabad Hyderabad [Pan : Aaica2190E] (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri P.Murali Mohan Rao,Ar रधजस् व द्वधरध/Revenue By: Shri Srinath Sadanala, Dr सुिवधई की तधरीख/Date Of Hearing: 21/11/2024 घोर्णध की तधरीख/Date Of 17/02/2025 Pronouncement: आदेश / Order Per. Manjunatha G., A.M: These Appeals Filed By The Revenue Are Directed Against Order Dated 11.09.2020 Of The Commissioner Of Income Tax (Appeals) [“Ld.Cit(A)”]-11, Hyderabad Pertaining To A.Y.2011-12, 2013-14 & 2014-15. Since, Facts Are Identical & Issues Are Common, For The Sake Of Convenience, The Appeals Filed By The Revenue Are Being Heard Together & Are Being Disposed Off By This Common Order.

For Appellant: Shri P.Murali Mohan Rao,ARFor Respondent: Shri Srinath Sadanala, DR
Section 132Section 143(1)Section 153ASection 153C

…ment of few persons of investor companies, without confronting those statements to the assessee for its rebuttal and cross-examination. Further, it is well settled principle of law by the decision of Hon’ble Supreme Court in the case of CIT Vs.Lovely Exports, 216 CTR 195 (SC), where it has been clearly held that if the share application money is received by the assesse company from alleged bogus shareholders, whose names are given to the Assessing Officer, then the department is free to proceed to reopen their individual assessment, in accordance with law but this amount of share money cannot be regarded as undis…

Assistant Commissioner of Income Tax, Central Circle -3(4), Hyderabad vs. Shoeb Estates Private Limited, Hyderabad

In the result, appeal filed by the Revenue is dismissed

ITA 76/HYD/2021[2011-12]Status: DisposedITAT Hyderabad17 Feb 2025AY 2011-12

Bench: Shri Manjunatha G. & Shri K.Narsimha Charyआ.अपी.सं /Ita No.76/Hyd/2021 & 77/Hyd/2021 (निर्धारण वर्ा/Assessment Year: 2011-12 & 2016-17) Asst.Commissioner Of Vs. M/S Shoeb Estates Income Tax Pvt.Ltd. Central Circle-3(4) Secunderabad Hyderabad [Pan : Aancs8525Q] (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri P.Murali Mohan Rao,Ar रधजस् व द्वधरध/Revenue By: Shri Srinath Sadanala, Dr सुिवधई की तधरीख/Date Of Hearing: 21/11/2024 घोर्णध की तधरीख/Date Of 17/02/2025 Pronouncement: आदेश / Order Per. Manjunatha G., A.M: These Appeals Filed By The Revenue Are Directed Against Order Dated 14.09.2020 Of The Commissioner Of Income Tax (Appeals) [“Ld.Cit(A)”]-11, Hyderabad Pertaining To A.Y.2011-12 & 2016-17. Since, Facts Are Identical & Issues Are Common, For The Sake Of Convenience, The Appeals Filed By The Revenue Are Being Heard Together & Are Being Disposed Off, By This Common Order. Shoeb Estates Pvt. Ltd.

For Appellant: Shri P.Murali Mohan Rao,ARFor Respondent: Shri Srinath Sadanala, DR
Section 132Section 143(1)Section 153ASection 153C

…vestor companies, without confronting those statements to the Shoeb Estates Pvt. Ltd. assessee for its rebuttal and cross-examination. Further, it is well settled principle of law by the decision of Hon’ble Supreme Court in the case of CIT Vs.Lovely Exports, 216 CTR 195 (SC), where it has been clearly held that if the share application money is received by the assesse company from alleged bogus shareholders, whose names are given to the Assessing Officer, then the department is free to proceed to reopen their individual assessment, in accordance with law but this amount of share money cannot be regarded as undis…

Deputy Commissioner of Income Tax Central Circle-1(3), Nagpur vs. M/S. Fuelco Coal India Ltd., Nagpur

Appeal of the Revenue is dismissed

ITA 90/NAG/2022[2014-15]Status: DisposedITAT Nagpur14 Feb 2025AY 2014-15

Bench: Shri V. Durgarao & Shrik.M. Roy, Accountant, Member

For Appellant: Shri Kishore P. DewaniFor Respondent: Shri Sandipkumar Salunke
Section 143(2)Section 143(3)Section 36(1)(iii)Section 40Section 40aSection 68

…IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI V. DURGARAO, JUDICIAL MEMBER AND SHRIK.M. ROY, ACCOUNTANT, MEMBER ITA no.90/Nag./2022 (Assessment Year : 2014–15) Dy. Commissioner of Income Tax ……………. Appellant Central Circle–1(2), Nagpur v/s M/s. Fuel Co. Coal India Ltd. 926–A, Fulwani Palace ……………. Respondent Central Avenue, Despande Layout Nagpur 440 008 PAN – AAACF8231B Assessee by : Shri Kishore P. Dewani Revenue by : Shri Sandipkumar Salunke Date of Hearing – 30/01/2025 Date of Order – 14/02/2025 O R D E R PER V. DURGA RAO, J.M. The appeal by the assessee is emanating from the impu…

Assistant Commisioner of Income Tax Central Circle-3(4), Hyderabad vs. Asma Estates & Investments Private Limited, Hyderabad

In the result, appeal filed by the Revenue is dismissed

ITA 37/HYD/2021[2011-12]Status: DisposedITAT Hyderabad13 Feb 2025AY 2011-12

Bench: Shri Manjunatha G. & Shri K.Narsimha Charyआ.अपी.सं /Ita No.37/Hyd/2021 To 39/Hyd/2021 (निर्धारण वर्ा/Assessment Year: 2011-12, 2013-14 & 2014-15) Asst.Commissioner Of Vs. M/S Asma Estates & Income Tax Investments Pvt.Ltd. Central Circle-3(4) Secunderabad Hyderabad [Pan : Aaica2191F] (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri P.Murali Mohan Rao,Ar रधजस् व द्वधरध/Revenue By: Shri Srinath Sadanala, Dr सुिवधई की तधरीख/Date Of Hearing: 21/11/2024 घोर्णध की तधरीख/Date Of 13/02/2025 Pronouncement: आदेश / Order Per. Manjunatha G., A.M: These Appeals Filed By The Revenue Are Directed Against Order Dated 11.09.2020 Of The Commissioner Of Income Tax (Appeals) [“Ld.Cit(A)”]-11, Hyderabad Pertaining To A.Y.2011-12, 2013-14 & 2014-15. Since, Facts Are Identical & Issues Are Common, For The Sake Of Convenience, The Appeals Filed By The Revenue Are Being Heard Together & Are Being Disposed Off, By This Common Order.

For Appellant: Shri P.Murali Mohan Rao,ARFor Respondent: Shri Srinath Sadanala, DR
Section 132Section 143(1)Section 153ASection 153C

…ment of few persons of investor companies, without confronting those statements to the assessee for its rebuttal and cross-examination. Further, it is well settled principle of law by the decision of Hon’ble Supreme Court in the case of CIT Vs.Lovely Exports, 216 CTR 195 (SC), where it has been clearly held that if the share application money is received by the assesse company from alleged bogus shareholders, whose names are given to the Assessing Officer, then the department is free to proceed to reopen their individual assessment, in accordance with law but this amount of share money cannot be regarded as undis…

Deputy Commissioner of Income Tax, Kolkata vs. Dollar Holding Pvt. Ltd., Kolkata

In the result, both the appeals of the Revenue are dismissed

ITA 1729/KOL/2024[2017-18]Status: DisposedITAT Kolkata11 Feb 2025AY 2017-18

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm

For Appellant: Shri A.K. Tulsyan, ARFor Respondent: Shri Abhijit Kundu, DR
Section 14ASection 68Section 69C

…erse and liable to be quashed - Held, yes [Paras 4 and 5] [Matter remanded]” In CIT vs. Roseberry Mercantile (P) Ltd, ITAT 241 of 2010, the Hon’ble Calcutta High Court had followed the decision of the Hon’ble Supreme Court in the case of Lovely Export (2008) 216 CTR 195 that if the share subscription was received from alleged bogus shareholders, the Revenue can reopen their individual assessment and addition cannot be made in the hands of the recipient company: "On the facts and in the circumstances of the case, Ld. CIT(A) ought to have upheld the assessment order as the transaction entered into by the assessee…

Deputy Commissoenr of Income Tax, Kolkata vs. Dollar Holding Pvt. Ltd., Kolkata

In the result, both the appeals of the Revenue are dismissed

ITA 1728/KOL/2024[2015-16]Status: DisposedITAT Kolkata11 Feb 2025AY 2015-16

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm

For Appellant: Shri A.K. Tulsyan, ARFor Respondent: Shri Abhijit Kundu, DR
Section 14ASection 68Section 69C

…erse and liable to be quashed - Held, yes [Paras 4 and 5] [Matter remanded]” In CIT vs. Roseberry Mercantile (P) Ltd, ITAT 241 of 2010, the Hon’ble Calcutta High Court had followed the decision of the Hon’ble Supreme Court in the case of Lovely Export (2008) 216 CTR 195 that if the share subscription was received from alleged bogus shareholders, the Revenue can reopen their individual assessment and addition cannot be made in the hands of the recipient company: "On the facts and in the circumstances of the case, Ld. CIT(A) ought to have upheld the assessment order as the transaction entered into by the assessee…

The DCIT, Central Circle-2(4), Ahmedabad vs. J.A . Infracon Pvt. Ltd., Ahmedabad

ITA 166/AHD/2021[2012-13]Status: DisposedITAT Ahmedabad21 Jan 2025AY 2012-13

Bench: Shri T.R. SENTHIL KUMAR (Judicial Member), Shri Narendra Prasad Sinha (Accountant Member)

Section 133(6)Section 143(1)Section 143(3)Section 69C

…erein, the Hon'ble High Court has considered the decision of the division Bench of Bombay High Court in the case of CIT vs. Gagandeep Infrastructure Pvt. Ltd 12017) 394 ITR 680 (Bom.) and the Hon'ble Supreme Court in the case of CIT vs. Lovely Exports (P) Ltd 216 CTR 195 (SC) and held as under:- “… 5. The Assessing Officer added Rs.95 lakhs as income under section 68 of the Income tax Act only on the ground that the parties to whom the share certificates were issued and who had paid the share money had to appeared before the Assessing Officer and the summons could be served on the address given as they were not t…