https://www.taxtmi.com/caselaws?id=313263 ITAT Mumbai held that section 68 does not apply to share application money received from non-resident companies. The tribunal ruled that the proviso to section 68, effective from AY 2013-14, only requires establishing the source of funds for resident shareholders, not non-resident shareholders. The assessee company received confirmation letters from the Swedish company regarding share application money. Since the basis for premium was not required until AY 2012-13 and proper justification existed for shares issued to the holding company at Rs. 10 premium per share, the addition made by AO under section 68 was deleted. Appeal decided in favor of assessee. en-us Fri, 27 Jul 2018 00:00:00 +0530 Wed, 03 Apr 2024 18:32:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=313263 ITAT Mumbai held that section 68 does not apply to share application money received from non-resident companies. The tribunal ruled that the proviso to section 68, effective from AY 2013-14, only requires establishing the source of funds for resident shareholders, not non-resident shareholders. The assessee company received confirmation letters from the Swedish company regarding share application money. Since the basis for premium was not required until AY 2012-13 and proper justification existed for shares issued to the holding company at Rs. 10 premium per share, the addition made by AO under section 68 was deleted. Appeal decided in favor of assessee. Case-Laws Income Tax Fri, 27 Jul 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=313263