JANANI INFRASTRUCTURE PVT. LTD. VS. ACIT (ITAT BANGALORE)

ITA NO.698 & 699/BANG/2018
02-08-2019

S. 68 Bogus Share Capital Premium: The test of human probabilities cannot be applied to business transactions. Share premium is collected as per the understanding between the parties. The AO cannot treat the share premium as unexplained cash credit only because the same is not commensurate with the income and financial strength of the assessee. The AO cannot reach this conclusion without further investigation and bringing material on record (All imp judgements referred).