2025 (7) TMI 765

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....ue has filed the present appeal under Section 260A of the Income Tax Act, 1961 [the Act] impugning an order dated 31.05.2023 passed by the learned Income Tax Appellate Tribunal [ITAT] in ITA No. 65/Del/2017 in respect of Assessment Year [AY] 2012-13 captioned ITO v. M/s Central Plastics Pvt. Ltd. 4. The respondent [Assessee] had filed its return of income for the AY 2012-13 declaring a loss of Rs. 18,581/-. The said return was picked up for scrutiny on account of large share premium received by the Assessee during the relevant period. The Assessing Officer [AO] observed that the Assessee had received share capital from three companies, namely, Confiance Trading Pvt. Ltd., Monarch Infraprojects Pvt. Ltd. and Khandelwal SRK Estate Pvt. Ltd.....

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....ient documents including bank details of the share applicants, copies of the bank statements, copies of the income tax return of the investor companies and the data from the MCA website. The said data reflected that the investor companies were live companies. The investor companies were also assessed to income tax and their final accounts indicated that sufficient funds were available with them. Thus, they had the ability to make the investments. 9. Insofar as the fee for increase in share capital is concerned, the CIT(A) held that the same was not revenue expenditure and directed that deduction in respect of the same be computed in accordance with the provisions of Section 35 D of the Act. 10. The Revenue preferred an appeal before the l....