Current account treatment of overseas tournament services removed most FEMA findings, but excess EEFC remittance and delayed repatriation remained bre...
Modification of bail conditions remains available through inherent jurisdiction where onerous deposits undermine justice and cannot recover disputed d...
Merchant banker regulation consolidates registration, governance, capital, reporting, outsourcing and investor-protection requirements under an update...
Addition u/s 68 - Bogus share capital and share premium received. The assessee failed to prove the identity and creditworthiness of the subscriber companies and the genuineness of the transactions. The assessee could not justify the huge premium charged nor establish the creditworthiness of the share applicants/shareholders. Most applicants lacked regular income sources or strong financials to justify the investment with huge premium. The assessee did not carry out any valuation to justify the premium charged. The transactions relating to share issuance were not genuine, and the creditworthiness of the creditors was not established. Based on judicial precedents and the CIT(A)'s findings that the applicants were shell companies, the ITAT upheld the CIT(A)'s order treating the addition u/s 68 as valid.
Addition u/s 68 - Bogus share capital and share premium received. The assessee failed to prove the identity and creditworthiness of the subscriber companies and the genuineness of the transactions. The assessee could not justify the huge premium charged nor establish the creditworthiness of the share applicants/shareholders. Most applicants lacked regular income sources or strong financials to justify the investment with huge premium. The assessee did not carry out any valuation to justify the premium charged. The transactions relating to share issuance were not genuine, and the creditworthiness of the creditors was not established. Based on judicial precedents and the CIT(A)'s findings that the applicants were shell companies, the ITAT upheld the CIT(A)'s order treating the addition u/s 68 as valid.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4784
Join Channel
TaxTMI 
