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| The Tax Publishers2020 TaxPub(DT) 1698 (Kol-Trib) INCOME TAX ACT, 1961
Section 68
Since share applicant company had been assessed to tax under section 143(3) of the Act and source of share application money in question was brought to tax in their hands, no additions can be made in case of assessee company.
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Income from undisclosed sources - Addition under section 68 - Receipt of share application money - Share application money already taxed in the hands of share applicant
Assessee company raised share capital including premium. AO conducted enquiries and assessee presented shareholders including directors of the share holding companies before AO. After due enquiry, AO accepted explanations of assessee that the cash credits in the form of share capital were genuine, except in case of M/s. Seacom Merchants, which had applied for shares. An amount of Rs. 20,00,000 pertaining to M/s. Seacom Merchants, was added in the hands of M/s. Seacom Merchants. Also, AO sought to tax same amount in the hands of assessee company.Held: Since share applicant company had been assessed to tax under section 143(3) of the Act and source of share application money in question was brought to tax in their hands, no additions can be made in case of assessee company.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, KOLKATA BENCH
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