Share Premium Classified as Capital Account, Not Income; Misunderstanding by Assessing Officers Leads to Deletion of Additions.

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....Addition u/s 68 - Share premium - Transaction in the nature of Capital Account - violation of the provision of Section 78(2) of the Companies Act, 1956 - The High court found in favor of the appellant, stating that the share premium received on the issuance of shares is on capital account and does not constitute income. Even if there were violations of Section 78 of the Companies Act, 1956, it would not turn the share premium amount into a revenue receipt. The Assessing Officers failed to understand the difference between utilization of funds and the creation of share premium account in the books of accounts. - Accordingly, the additions so made by AO deleted.....