ACIT Vs Pujita Merchandise Pvt. Ltd. (ITAT Kolkata)
In the case mentioned above The Kolkata Bench of ITAT ruled that Section 68 of the IT Act is applicable when credit is received in the relevant year not for the earlier years.
The brief facts of the case are that the assessee company filed its return of income for AY 2012-13 at Rs.11,100/-. Case was selected for scrutiny therefore notices u/s 143(2) and 142(1) were issued. The assessment of the assessee was completed u/s 143(3) at the total income of Rs.9,26,11,100/-. During the assessment proceedings, Assessing Officer discovered that the assessee had received fund from issuing equity shares at Rs.10/- each with premium of Rs.90/- per share and raised fully paid-up share capital of Rs.9,26,00,000/-. A large part of this application money had been received in prior years, while only Rs.1,00,000/- was received in the current year from M/s Mohan Management Ltd. Out of the total share application money of Rs. 9,46,00,000/-, the assessee refunded Rs.21,00,000/- to M/s Mohan Management Ltd. on 23.02.2012 and received fresh share application of Rs.1,00,000/- during the assessment year in question. Assessing Officer suspected a collusion between the assessee and its investor companies citing the high share premium as unusual. Thus, the Assessing Officer made addition of Rs.9,26,00,000/- invoking section 68 of the Act to the taxable income of the assessee.
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