C O M M ON O R D E R

These Writ Petitions have been filed by three Directors in a Private Limited Company, by name Rai Ispat Pvt. Ltd. (hereinafter referred to and in short ‘company’) challenging orders passed in terms of Section 179 of the Income Tax Act, 1961 (in short ‘Act’).

2. A brief history of the matter is set out below, as relevant to decide this writ petition:

(i) The Company is stated to be part of a group of companies, trading in steel and engaging in the acquisition of shares of other companies for the purposes of holding as investment.

(ii) A search under Section 132 was carried out on 26.09.2012 in the premises of a group company, SBQ Steels Ltd. consequent upon which the assessments of the company were reopened under Section 147 of the Act.

(iii) Additions were made in the hands of the company, two substantive additions being a) a sum of Rs.3.60 Crores that were received as share application from one Chandan Credits Ltd. on the ground that the aforesaid company was a paper concern and treating the share application as unexplained credit and b)a sum of Rs.4.62 crores (approx.) being investment in shares of SBQ steels as unexplained investment under Section 69 of the Act.

(