https://www.taxtmi.com/caselaws?id=772795 The HC allowed the assessee's appeal in a case involving addition under Section 68 for bogus share capital and premium. The AO erroneously treated the assessee as an investment/trading company when it was actually a manufacturing company operating in Falta Special Economic Zone with proper approvals for manufacturing quilts and pillows. The AO failed to provide reasons for rejecting the assessee's comprehensive documentation spanning 436 pages, including share application forms, fund sources, bank statements, and audited accounts. The assessee used raised funds to repay loans rather than invest in other companies, had substantial fixed assets worth Rs. 10.59 crore, and temporarily ceased operations due to contract termination with foreign buyer IKEA before resuming profitable operations in subsequent years. en-us Mon, 09 Jun 2025 00:00:00 +0530 Fri, 13 Jun 2025 08:41:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=772795 The HC allowed the assessee's appeal in a case involving addition under Section 68 for bogus share capital and premium. The AO erroneously treated the assessee as an investment/trading company when it was actually a manufacturing company operating in Falta Special Economic Zone with proper approvals for manufacturing quilts and pillows. The AO failed to provide reasons for rejecting the assessee's comprehensive documentation spanning 436 pages, including share application forms, fund sources, bank statements, and audited accounts. The assessee used raised funds to repay loans rather than invest in other companies, had substantial fixed assets worth Rs. 10.59 crore, and temporarily ceased operations due to contract termination with foreign buyer IKEA before resuming profitable operations in subsequent years. Case-Laws Income Tax Mon, 09 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=772795