Income Tax Dept warns public against cash dealings of Rs 2 lakh or more saying that the receiver of the amount will have to cough up an equal amount as penalty.

S. 68 Bogus Share Premium: No reason to interfere. SLP dismissed. High Court held there is no limitation on the amount of premium that can be charged

S. 68 Bogus Share Premium: No reason to interfere. SLP dismissed. High Court held there is no limitation on the amount of premium that can be charged. The AO cannot question the transaction merely because he thinks the investor could have managed by paying a lesser amount as share premium. It is the prerogative of the Board of Directors to decide the premium and it is the wisdom of the shareholder whether they want to subscribe to shares at such a premium or not. S. 68 does not apply as the funds were received through banking channels and the identity, creditworthiness and genuineness of the investors was established


SPECIAL LEAVE PETITION (CIVIL) Diary No(s). 1992/2019

(Arising out of impugned final judgment and order dated 07-08-2018 in ITA No. 111/2018 passed by the High Court Of M.P. At Indore)

PR. COMMISSIONER OF INCOME TAX (I) Petitioner(s)

VERSUS

M/S CHAIN HOUSE INTERNATIONAL (P) LTD. Respondent(s)

Share This!



No comments:

Post a Comment