Issue of Share at Premium: ITAT Deletes Rs. 57.5 Crore Addition

ITO Vs Umang Trading Pvt. Ltd. (ITAT Kolkata) The case of Income Tax Officer (ITO) vs. Umang Trading Pvt. Ltd., adjudicated by the Income Tax Appellate Tribunal (ITAT) in Kolkata, revolves around the issue of share capital raised by Umang Trading Pvt. Ltd. and the subsequent addition of Rs. 57.5 crore by the Assessing Officer (AO) under Section 68 of the Income Tax Act. The primary contention was whether the share capital raised by Umang Trading Pvt. Ltd., including a substantial share premium, was genuine or merely an attempt by the company to launder its own money through a complex layering ...