TaxTMI 
TaxTMI 
2025 (11) TMI 102
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....ssed by the Income Tax Appellate Tribunal, "A" Bench, Kolkata in ITA No.424/Kol/2020 relating to the assessment year 2012-2013 in respect of the assessee/respondent herein. 3. Learned advocate appearing for the appellant submits that, the Assessing Officer [AO] was not satisfied with the explanation given by the assessee with regard to the issue and allotment of shares at a premium for the particular assessment year, considering the nature and business of the Company, the books of accounts of the Company and other materials. He submits that, the decision of the Assessing Officer in adding the share premium amount to the income of the assessee, was wrongly reversed by the appellate Authority. 4. Being aggrieved, the appellant approache....
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....Kolkata vs. M/s. Naina Distributors Pvt. Ltd.] in support of the proposition that, section 68 of the Income Tax Act, 1961 cannot be invoked in the facts and circumstances of the present case. 7. In the facts and circumstances of the present case, the assessee is a company governed by the Companies Act, 2013. During the relevant assessment year, the assessee, raised share capital of Rs. 9,00,00,000/- from seven share applicants by issuing 90,000 shares of a face value of Rs. 10/- at a premium of Rs. 990/-. Assessee submitted the details of the issuance of shares at a premium in its assessment proceedings. The assessee submitted the return filing acknowledgement, audited balance-sheet, bank statement, confirmation and source of fund from t....
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....m is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the [Assessing Officer], satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year: [Provided that where the sum so credited consists of loan or borrowing or any such amount, by whatever name called, any explanation offered by such assessee shall be deemed to be not satisfactory, unless- (a) the person in whose name such credit is recorded in the books of such assessee also offers an explanation about the nature and source of such sum so credited; and ....
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....ee to offer explanation about the nature and source of the credit shown in the account and once it arrives at a finding that, there is no explanation with regard to the nature and source of the sum involved, treat the same as income of the assessee and charge income tax for the relevant assessment year. 11. There are three provisos to Section 68 of the Act of 1961. The first proviso deals with a loan or borrowing. The second proviso deals with share application money and the third proviso speaks about venture capital fund. 12. In the facts and circumstances of the present case, the assessee issued allotted shares at a premium. Therefore, at the highest, the second proviso to Section 68 will come into operation, assuming though not adm....