Case Law Details
Brief Facts of the Case and Question of LawBrief Facts
During AY 2003-04, the assessee had received Rs. 1.65 crores as share application money from three concerns. These three amounts were returned by the assessee in the succeeding financial year 2004-05. It is a matter of record that the amounts were retained by the assessee for about 3-4 months. The AO disallowed the entire amount of Rs. 1.65 crores on the basis of his decision that the three entities, i.e. the share applicants did not have adequate resources.
Question of Law
Whether share application money be treated as unexplained credit under section 68 on the grounds that share applicants did not had adequate means or resources?
Contention of the Assessee
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