Tag: bogus share capital

Addition u/s 68 for not producing shareholders details deleted. In public issue company not expected to know every detail of subscribers-High Court

Addition u/s 68 for not producing shareholders details deleted as in public issue company not expected to know every detail of subscribers-High Court ABCAUS Case Law Citation: ABCAUS 2198 (2018) (02) HC Important Case Laws Cited/relied upon by the parties: Divine Leasing & Finance Ltd. (2007) 207 CTR …

Addition for accommodation entries merely based on statement of investors ignoring documents furnished invalid-High Court

Addition for accommodation entries merely based on statement of investors and without controverting the documents furnished invalid-High Court Prelude: The additions on account of accommodation entries have been a common feature in income tax proceedings which have attracted litigation. A typical modus operandi adopted by the receiver of the such …

Share application money circular transaction addition u/s 68 deleted where loan creditors had subscribed

Share application money circular transaction addition u/s 68 deleted where loan creditors had subscribed out of the loans repaid by the company-ITAT upholds findings of CIT(A) as identity, genuineness of transaction and creditworthiness of subscribers were not doubted Prelude: Section 68 of the Income Tax Act, 1961 (Act) contains provisions …