Case Law Details
Ideacount Education Pvt. Ltd. Vs ACIT (ITAT Mumbai)
Facts- The matter of the assessee was re-opened on the ground that the assessee had issued 10 Lakhs shares at a price of INR 148 per share, however, the book value per share was INR 118.63 as per AO. Hence, the sum of INR 9,86,87,002/- being excess the premium charged as revenue income under section 56 of the Act.
Conclusion- In present case, no addition was made under section 56. However, AO has made addition of share capital under section 68 of the Act. In our view no addition under section 68 of the Act on account of share capital could have been made only if addition under section 56 of the Act on share premium was also made. This is because Assessing Officer had no reasons to belief that income has escaped assessment under section 68 of the Act being cash credit on account of share premium or share application money or share capital as the case may be.
Re-opening is quashed by following the judgement of Hon’ble Bombay HC in the matter of Jet Airways
FULL TEXT OF THE ORDER OF ITAT MUMBAI
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