Ravilochanah Mercantile Pvt. Ltd. vs. ITO Wad 4(1)
Parties Involved
Facts Summary
The assessee, Ravilochanah Mercantile Pvt. Ltd., filed its return of income on 08.09.2012, declaring a total income of ₹427. The return was selected for scrutiny under Computer Assisted Scrutiny Selection (CASS) due to the large share premium received by the assessee. The assessee provided detailed information and documents to the Assessing Officer (AO) during the assessment proceedings, including names, addresses, PANs, audited accounts, copies of bank statements of allottees, and its own audited accounts, allotment return, form No. 18, Board Resolutions, and bank statements. Despite this, the AO treated the share capital/share premium of ₹1,02,00,000/- as unexplained income and added it to the assessee's income, relying on precedents set by the Supreme Court. The Commissioner of Income Tax (Appeals) [CIT (A)] upheld the AO's order. The assessee appealed to the Income Tax Appellate Tribunal (ITAT).…
Decision in favour of
Assessee
Legal Issues
- 1. Whether the addition of ₹1,02,00,000/- as share capital/share premium by the AO is justified.
Judgment Outcome
Decided in favour of Assessee.
Precedents Relied Upon
4 precedents cited in this judgement.
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