IT: Where all companies making payment of share application money and share premium money, addition as unexplained credit was unwarranted
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[2014] 51 taxmann.com 198 (Madras)
HIGH COURT OF MADRAS
Commissioner of Income-tax, Chennai
v.
Pranav Foundations Ltd.*
R. SUDHAKAR AND G. M. AKBAR ALI, JJ.
T. C. (A.) NO. 262 OF 2014†
AUGUST 12, 2014
Section 68 of the Income-tax Act, 1961 - Cash Credit (Share application money) - Assessment year 2007-08 - Assessee received share application money and share premium money from four parties - Assessing Officer treated said money as unexplained credit under section 68 - However all four parties were limited companies and enquiries were made and received from four companies and all companies accepted their investment - Whether where assessee had categorically established nature and source of said sum, addition of such subscription as unexplained credit under section 68 was unwarranted - Held, yes [Para 6][In favour of assessee]
■■■
[2014] 51 taxmann.com 198 (Madras)
HIGH COURT OF MADRAS
Commissioner of Income-tax, Chennai
v.
Pranav Foundations Ltd.*
R. SUDHAKAR AND G. M. AKBAR ALI, JJ.
T. C. (A.) NO. 262 OF 2014†
AUGUST 12, 2014
Section 68 of the Income-tax Act, 1961 - Cash Credit (Share application money) - Assessment year 2007-08 - Assessee received share application money and share premium money from four parties - Assessing Officer treated said money as unexplained credit under section 68 - However all four parties were limited companies and enquiries were made and received from four companies and all companies accepted their investment - Whether where assessee had categorically established nature and source of said sum, addition of such subscription as unexplained credit under section 68 was unwarranted - Held, yes [Para 6][In favour of assessee]
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