The Tax Publishers2020 TaxPub(DT) 5209 (Kol-Trib)

INCOME TAX ACT, 1961

Section 68

Shares at premium were issued by assessee-company to other companies in lieu of shares held by those companies and since no cash was involved in these transactions and transactions were entered into in books of assessee-company by way of journal entries, AO was not, therefore, justified in making addition under section 68.

Income from undisclosed sources - Addition under section 68 - Share issued to other companies in lieu of shares -

Assessee-company issued shares at premium to certain companies in lieu of shares held by said companies. AO made addition of share capital, including premium under section 68. Held: Shares at premium were issued by assessee-company to other companies in lieu of shares held by those companies and since no cash was involved in these transactions and transactions were entered into in books of assessee-company by way of journal entries, AO was not, therefore, justified in making addition under section 68.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2008-09



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