Section 68 Addition based on non-appearance of directors not sustainable: ITAT Mumbai

ITO Vs Mandvi Salts & Logistics Pvt. Ltd. (ITAT Mumbai) ITAT Mumbai held that mere non-appearance of directors is no basis for invoking provisions of section 68 of the Income Tax Act. Accordingly, addition towards share application money and share premium is liable to be deleted. Facts- Broadly, there are two issues involved in the present appeal filed by the revenue, viz., first relating to addition made towards share capital and share premium received from two share subscribers, totaling into Rs.5 crores and second, relating to disallowance of Rs.36,43,646/- u/s. 14A r.w. rule 8D. Notabl...