Enforcement of resolution-plan directions continues without a Supreme Court stay, preventing suspension of redistribution and escrowed-fund distributi...
Third-party ownership claims over attached property require Special Court adjudication where purchasers lack registered sale deeds and bona fides rema...
Pure-agent reimbursements in clearing and forwarding services are excluded from taxable value when qualifying third-party payments are properly record...
Customs relief for Strait of Hormuz maritime disruptions remains available, with existing conditions continuing unchanged through the extended validit...
ITAT ruled in favor of the appellant regarding share capital additions under Section 68. The tribunal found that since cash receipts and corresponding credits occurred in the previous assessment year, no additions could be made in the current year based on share allotment. For AY 2017-18, the issuance of 1,50,000 shares to A Co. was deemed legitimate as the company demonstrated sufficient operational revenue (Rs. 15.49 Cr), trading activities, and adequate shareholder funds. The shares were issued at the same premium rate as existing shareholders, supported by a Rule 11UA valuation report. The appellant satisfied all requirements under Section 68, establishing the nature and source of share capital. The appeal was allowed, reversing the AO's additions.
ITAT ruled in favor of the appellant regarding share capital additions under Section 68. The tribunal found that since cash receipts and corresponding credits occurred in the previous assessment year, no additions could be made in the current year based on share allotment. For AY 2017-18, the issuance of 1,50,000 shares to A Co. was deemed legitimate as the company demonstrated sufficient operational revenue (Rs. 15.49 Cr), trading activities, and adequate shareholder funds. The shares were issued at the same premium rate as existing shareholders, supported by a Rule 11UA valuation report. The appellant satisfied all requirements under Section 68, establishing the nature and source of share capital. The appeal was allowed, reversing the AO's additions.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4801
Join Channel
TaxTMI 
