Section 68: Issue of shares in lieu of shares was not unexplained credit

ITO Vs Bhagwat Marcom Pvt. Ltd. (ITAT Kolkata) The issue under consideration is whether the addition u/s 68 on account of share capital and share premium by treating the same as unexplained cash credit is justified in law? The assessee in the present case is a company which is engaged in the business of investment and trading of shares and securities. During the year under consideration, the company issued shares at premium to certain companies in lieu of shares held by those companies. AO issued notices under section 131 to the directors of share applicant companies requiring them to appear p...