Share Premium Received Through Verified Investors Cannot Be Treated as Bogus Cash Credit: ITAT Delhi

Saffron Groceries Pvt. Ltd. Vs ITO (ITAT Delhi) The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) allowed the assessee’s appeal and deleted an addition of ₹45 lakh made under Section 68 of the Income Tax Act, 1961 in respect of share capital and share premium received from two investor companies. The dispute related to Assessment Year 2016-17, where the Assessing Officer treated share application money and share premium received from M/s Pearl Multicon Private Ltd. and M/s Pearl Propcon Private Ltd. as bogus cash credits. The assessee had issued 56,250 equity shares having a face...