ITAT Delhi Sets Aside Share Capital Addition a Further Verification Was Required

Advertisement Stryton Exim India Pvt Ltd Vs ITO (ITAT Delhi) The appeal before the Income Tax Appellate Tribunal arose from additions made under Section 68 and Section 56(2)(viib) of the Income-tax Act for AY 2014-15. The assessee, a private limited company, had issued shares worth ₹20 crore to seven companies and charged share premium of ₹19.90 crore. The Assessing Officer (AO) treated the share capital as unexplained cash credits under Section 68 and, on a protective basis, made an addition of ₹19.90 crore under Section 56(2)(viib). The assessee challenged both additions. Before the...