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ITAT deletes addition for share capital credited through journal entries
Case Law Details
- Case Name
- ITO Vs Hindustan Breweries and Bottling Limited (ITAT Pune)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2013-14
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ITO Vs Hindustan Breweries and Bottling Limited (ITAT Pune)
Introduction: In the case of Income Tax Officer (ITO) versus Hindustan Breweries and Bottling Limited, the Income Tax Appellate Tribunal (ITAT) Pune was faced with a question regarding the nature of share capital credited through journal entries. The primary point of contention was whether such entries should be deemed as ‘unexplained share capital’ under section 68 of the Income Tax Act.
Analysis: The ITAT closely examined the case where the assessee received fresh share capital amounting to Rs.6.00 crore...
If the journal entry shown was actually made on the date which was shown in the journal, this can be allowed.But if the entry is made on some other date but not on the date as can be seen from the journal,the department can find it out by going for audit of the hard disc of the assessee’s computer system.This clue should have been in the ITAT order.All members of ITAT know what is computer audit.