In the presence of full disclosure of source of share application money AO cannot raise question on that

Last updated: 26 March 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The brief facts of the case are that assessee has filed its return of income on 30.3.2003 declaring an income of Rs.43,400. This return was processed under sec. 143(1) of the Income-tax Act, 1961 on 25.5.2003 at the returned income. According to the Assessing Officer, he has received information from the Director of Income-tax (Inv.) exhibiting that assessee has received accommodation entry/bogus share application money/bogus capital gain from the persons who were indulged in providing accommodation entries. He reopened the assessment and issued a notice under sec. 148 on 30th March 2009. The assessee contended before the Assessing Officer that it has received share application money of Rs.64 lacs from various parties.

Citation :
Assistant CIT, Circle 14(1), New Delhi.(Appellant) Vs. Puneet Mercantiles & Credits (P) Ltd., B-156, Pachim Vr.,Delhi.(PAN: AAACP0538K) (Respondent)