Share Premium Can’t Be Taxed U/s 68 Merely Because AO Finds It Excessive: Mumbai ITAT

ACIT Vs Diligent Media Corporation Limited (ITAT Mumbai) Share Premium Can’t Be Taxed U/s 68 Merely Because AO Finds It Excessive: Mumbai ITAT The Mumbai ITAT upheld the deletion of a massive addition of ₹112.52 crore made under Section 68 towards share premium received by Diligent Media Corporation Ltd., holding that for AY 2011-12, the Assessing Officer could not invoke Section 68 merely because he believed the share premium charged was excessive or unsupported by the intrinsic value of the shares. The assessee had issued shares to its holding company, Mediavest India Pvt. Ltd., at a...