Case Law Details
M/s. Shreenath Heritage Liquor Pvt Ltd. Vs ACIT (ITAT Jaipur)
Conclusion:
Addition under section 68 on account of share application money received from non-resident was not justified as money brought into India by non-residents for investment or other purposes was not liable to Indian Income Tax.
Held:
Assessee received share application money from non-resident. AO made the addition of Rs. 83.25 lacs u/s 68 on the ground that creditworthiness of the investor was not proved. It was held investment made by Shri Jagjit Singh amounting to Rs. 85.23 lacs through his Saving Bank A/c towards share application money to assessee-company during the Assessment Year 2013-14. These payments were made to assessee company through RTGS. It was noted that money had been brought into India through banking channel.
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