ITAT explains when Share premium can be assessed as undisclosed income

Cornerstone Property Investments Pvt. Ltd Vs. ITO (ITAT Bangalore) In this case A finding has been rendered that there has been routing of money for illegal purposes through a chain of companies in which the assessee is a conduit in the layering process. The Assessing Officer has highlighted several factors before concluding that the real purpose of transfer of funds is not for the purpose of investment but is only a conduit to route the funds involved as a layering process. The Assessing Officer has pointed out that – (i) The Director of the assessee company has been allotted shares at par ...