Case Law Details
DCIT Vs Piramal Realty Pvt. Ltd. (ITAT Mumbai)
Conclusion :- Transaction is duly recorded in the books of accounts, statutory returns are duly filed with regard to allotment of shares. Documentary evidence proving identity, creditworthiness and genuineness of the transaction is provided. Addition under section 68 not possible.
Facts :-
Assessee engaged in the business of real estate and real estate development and incidental services. Assessee issued 59,850 cumulative convertible preferential shares of INR 10 each to only one share applicant namely Piramal Estate and charged share premium for the same at INR 99,990/- per share.
Company incorporated in the end of year 2010 and suffered loss in the year 2011-2012. AO demanded justification of huge share premium of INR 99,990/- per share. AO treated share premium amount as unexplained and added the same into the income in terms of section 68.
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