Addition cannot be made just because share premium is abnormally high as per test of human probabilities

Bharathi Cement Corporation Pvt. Ltd. Vs ACIT (ITAT Hyderabad) Conclusion: In the matter f Issue of Share at High Premium AO should not resort to rely on circumstantial evidence or on test of human probabilities but on factual evidence of passing of benefit to the shareholders/directors. Hence ITAT remanded the matter  back to AO to re-assess whether the assessee was used as a vehicle to pass on the benefit to the shareholder / director. FACTS – Assessee, a company, is engaged in manufacture and sale of cement. Assessee issued 0% convertible preferential shares in private placement to 3 inv...