This is premium content. Please become a Premium member. If you are already a member, login here to access the full content.
Sec. 68 addition cannot be made merely for exorbitant premium
Case Law Details
- Case Name
- Principal Commissioner of Income Tax Vs M/s. Chain House International (P) Ltd.) (Madhya Pradesh HC)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2012-13 & 2013-14
- Courts
- All High Courts, Madhya Pradesh HC
Upgrade to Basic or Premium to download.
Already Upgraded? Log in.
PCIT Vs M/s. Chain House International (P) Ltd. (Madhya Pradesh HC)
Conclusion: Addition under section 68 on account of bogus share capital and exorbitant premium was not justified as where the funds had been received through banking channel and there was no dispute about the identity, creditworthiness and genuineness of the investors. Also, it was a prerogative of the Board of Directors of a company to decide the premium amount and it was the wisdom of shareholder whether they wanted to subscribe to shares at such a premium or not and moreover the section 68 did not envisages any law on sha...
