Section 68 Share Premium Addition Cannot Be Based on mere Summons Default

CA Vijayakumar Shetty 29 Aug 2025 345 Views 0 comment Print Income Tax | Judiciary

Case Law Details

Case Name : Montrose Commodities Pvt. Ltd. Vs ITO (ITAT Kolkata)

Related Assessment Year : 2012-13

Upgrade to Basic or Premium to download. Already Upgraded? Login here to access.

Montrose Commodities Pvt. Ltd. Vs ITO (ITAT Kolkata) Assessee, a private limited Company had received share capital & premium of ₹1.58 crore during AY 2012-13. The case was selected for scrutiny due to large share premium received. During assessment, Assessee furnished complete details including names & addresses of subscribers, audited financials, bank statements & confirmations. AO, however, made addition u/s 68 holding that since summons issued u/s 131 were not complied with by directors of subscriber companies, genuineness & creditworthiness remained unverified. According...

This is premium content. Please become a Premium member. If you are already a member, login here to access the full content.

Author Bio

Name: CA Vijayakumar Shetty

Qualification: CA in Practice

Company: Shetty & Co, Chartered Accountants, Mangalore

Location: Mangalore, Karnataka, India

Member Since: 17 Feb 2018 | Total Posts: 5474

CA Vijayakumar Shetty qualified in 1994 and in practice since then. Founding partner of Shetty & Co. He is a graduate from St Aloysius College, Mangalore . View Full Profile

My Published Posts

Bengaluru ITAT Restores Search Assessments Despite Repeated Non-Compliance, Subject to ₹50,000 Cost Per Appeal Bengaluru ITAT: Section 270A Penalty Invalid Where Notice Fails to Specify the Exact Limb of Under-Reporting or Misreporting Bengaluru ITAT: Salary Is Taxable Only When It Becomes Due; Mere Reporting in Form 16 or Form 26AS Does Not Conclusively Establish Taxability ITAT Bangalore: TDS Credit Denied to One Entity Where Income Taxed in Another; Firm to Seek Rectification Bengaluru ITAT: Delay in Filing Appeal Condoned; Foreign Tax Credit Cannot Be Denied on Mere Technical Grounds if Form 67 Was Filed in Time View More Published Posts

Case Law Details

Tags:

Author Bio

Name: CA Vijayakumar Shetty

Qualification: CA in Practice

Company: Shetty & Co, Chartered Accountants, Mangalore

Location: Mangalore, Karnataka, India

Member Since: 17 Feb 2018 | Total Posts: 5474

My Published Posts

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Subscribe to Our Daily Newsletter

Latest Posts

Featured Posts

Popular Posts