Commercial vehicle depreciation, scientifically determined warranty provisions and exempt-income disallowances were resolved in favour of the taxpayer...
Inherited property sale proceeds require capital-gains treatment where ownership is supported by evidence, not suspicion or unverified signature doubt...
Cross-examination of retracted statements is essential where foundational evidence supports a benami allegation and documented funding explanations re...
Capital-goods exemption covers plant-modernisation accessories, while the import restriction applies only to earlier capital-goods components and spar...
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 
