Amount received as share premium: Applicability of Section 68.

Case: Shreenath Holdings Pvt Ltd vs. I.T.O.,Ward-5(1), Kolkata ITAT Outcome: Assessee Facts The Assessee Company was engaged in the business of trading and distribution of goods. It filed its return of income on 16.08.2012 declaring total income of Rs.15,500/-. During the year, the Assessee had raised share capital including premium amounting to Rs.1.13 crores. The … Continue reading Amount received as share premium: Applicability of Section 68.

Shares issued for shares under barter system: Applicability of section 68

Case: Blooming Tradelink Pvt Ltd vs. Ito, Ward - 10(1), Kolkata ITAT Outcome: Assessee Facts The Assessee had raised share capital including share premium to the tune of Rs.5.01 crore The Assessing Officer added back the entire amount of share capital including premium raised treating the same as unexplained cash credit under section 68 of … Continue reading Shares issued for shares under barter system: Applicability of section 68

The amount received as share premium: Applicability of Section 68

Case: M/S Intent Dealers Pvt. Ltd. Kolkata vs. I.T.O.,Ward-10(2), Kolkata ITAT Outcome: Assessee Facts The Assessee had filed the return on 15.01.2013. The case was selected for scrutiny and the assessment order under section 143(3) was passed on 25.03.2015. Subsequently, notice under section 263 was issued by the Principal Commissioner of Income Tax owing to … Continue reading The amount received as share premium: Applicability of Section 68

Transactions in Penny Stocks: Applicability of Section 68/ Section 69

Case: Shri Sanjay Jain vs. DCIT, Cc-1, Chandigarh ITAT Outcome: Assessee Facts The Assessee was an individual having salary income from M/s Royal Lifestyle Jewellers Pvt. Ltd. in the capacity of a director. The Assessee during the year earned long term capital gains from the sale of shares of M/s Presha Mettallurigical Ltd., company, amounting … Continue reading Transactions in Penny Stocks: Applicability of Section 68/ Section 69

Unexplained Cash Credits: Who bears the burden of proof?

Section 68 of the Income Tax Act, deals with unexplained credit whose nature and source cannot be satisfactorily explained by the assessee. Section 68 is an effective tool in the hands of the assessment authorities to prevent the conversion of black money into any other amount such as share premiums or share capital and escape … Continue reading Unexplained Cash Credits: Who bears the burden of proof?

Can share application money invested through cash be considered as undisclosed Income under section 68 of IT Act?

Case: DCIT v/s M-s Modern Dalkhola Flour Mills Pvt LTD, ITAT KOLKATA Listen to the case summary DCIT v/s M-s Modern Dalkhola Flour Mills Pvt LTD, ITAT KOLKATA here Facts: Share Application money along with premium was received from 11 parties.3 parties were corporate entities belonging to same group.8 parties were individuals, all relatives of the director.1 … Continue reading Can share application money invested through cash be considered as undisclosed Income under section 68 of IT Act?

Unexplained cash credits: 5 questions and their answers

Section 68 is one of the few sections in the Income Tax Act of 1961 which has largely remained unchanged. Apart from addition of provisos to cover corporate taxpayers, the purpose of the section has remained unchanged. So what does section 68 say? Amounts credited to an assessee are taxable unless the Act has specifically … Continue reading Unexplained cash credits: 5 questions and their answers