Share Capital Cannot Be Treated as Undisclosed Income of Company: Madras HC

V.R. Global Energy Pvt. Ltd. (formerly known as TTGS Consolidates Pvt. Ltd.) Vs. ITO (Madras High Court) Counsel argued, and rightly, that when there was no cash involved in the transaction of allotment of shares, provisions of Section 68 of the said Act treating it as unexplained cash credit are not attracted.  Learned counsel for the appellant assessee emphatically argued that inasmuch as the source of credit in which shares were allotted was clearly explainable, the same cannot be treated as unexplained cash credit. Moreover, the identity of the share holders and the liability of th...