Sec. 68 addition cannot be made merely for exorbitant premium

PCIT Vs M/s. Chain House International (P) Ltd. (Madhya Pradesh HC) Conclusion: Addition under section 68 on account of bogus share capital and exorbitant premium was not justified as where the funds had been received through banking channel  and there was no dispute about the identity, creditworthiness and genuineness of the investors. Also, it was a prerogative of the Board of Directors of a company to decide the premium amount and it was the wisdom of shareholder whether they wanted to subscribe to shares at such a premium or not and moreover the section 68 did not envisages any law on sha...