Case Law Details

Case Name : PCIT Vs Chain House International (P) Ltd (Supreme Court)
Appeal Number : Special Leave Petition (Civil) Diary No(s). 1992/2019
Date of Judgement/Order : 18/02/2019
Related Assessment Year :
Courts : Supreme Court of India (1057)

PCIT Vs Chain House International (P) Ltd (Supreme Court of India)

In this case Supreme Court upheld the Judgment of Madhya Pradesh High Court. Madhya Pradesh High Court held that The question raised by the revenue in regard to issuing the share at a premium is purely a question of fact. It is a prerogative of the Board of Directors of a company to decide the premium amount and it is the wisdom of shareholder whether they want to subscribe to shares at such a premium or not and moreover the section 68 does not envisages any law on share premium it only requirement is to identity of the investors, the genuineness of the transaction and the creditworthiness of the share applicants which same has been discharged by the respondent authority and the same has been accepted by the appellate authorities thus, the same cannot be reconsidered in these appeals as it is a pure question of fact. Section 68 does not apply as the funds were received through banking channels and the identity, creditworthiness and genuineness of the investors was established

FULL TEXT OF THE SUPREME COURT JUDGMENT

Delay condoned.

We see no reason to interfere with the impugned order. The special leave petition is, accordingly, dismissed. Pending application(s), if any, shall stand disposed of.

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