Section 68 Addition cannot be made without proper enquiry by AO

DCIT Vs Senorita Enterprises Pvt. Ltd. (ITAT Delhi) Conclusion: Addition under section 68 on account of high premium was unjustified as there was a clear lack of inquiry on the part of AO once assessee had furnished all the relevant material. Held: AO asked the reason for charging high premium @Rs.240/- per share from assessee. Assessee filed documents alongwith confirmations of shareholders, bank statement, ITR acknowledgements, balance sheets as on 31.03.2007 etc so as to justify three ingredients required u/s 68. The same were examined and found to be routine documents as filed before Inves...