Addition for Subscription to share Capital by Kolkata based companies

CA Sandeep Kanoi In the case of Orchid Industries Pvt. Ltd. Vs. DCIT ITAT Mumbai deleted the addition made in respect of Share Capital Subscription received by the Assessee Company from Kolkata based Companies. ITAT has relied on the case of CIT Vs. Lovely Exports Pvt. Ltd. (supra) in which Hon’ble Supreme Court, has held 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 reopen their individual assessment in accordance with law but it cannot be regarded as undis...