Reopening of assessment is not valid if the Assessing officer was well aware of the facts. Whether assessee disclosed it or not is irrelevant.
Indore High Court held there is no limitation on the amount of premium that can be charged. The AO cannot question the transaction merely because he thinks the investor could have managed by paying a lesser amount as share premium. It is the prerogative of the Board of Directors to decide the premium and it is the wisdom of the shareholder whether they want to subscribe to shares at such a premium or not. S. 68 does not apply as the funds were received through banking channels and the identity, creditworthiness and genuineness of the investors was established.
SLP dismissed in the SC was dismissed as it finds no reason to interfere