Court : SUPREME COURT OF INDIA
Brief : There are catena of judgements both for and against the department on the subject, whether share applicatio money received for allotment of shares can be treated as undisclosed income. The Apex Court has settled the matter by this judgement.
UPON hearing counsel the Court made the following ORDER Delay condoned. Can the amount of share money be regarded as undisclosed income under Section 68 of Income Tax Act, 1961? We find no merit in this Special Leave Petition for the simple reason that 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 re-open their individual assessments in accordance with law. Hence, we find no infirmity with the impugned judgment. Subject to the above, Special Leave Petition is dismissed.
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