ROYAL RICH DEVELOPERS PVT. LTD VS. PCIT (BOMBAY HIGH COURT)
I.T.A. NO. 438 OF 2017
15-07-2019

S. 68 Bogus Share Capital: No rational person with sound mind will invest huge amount in the share subscription of a paper/shell company having no worthwhile business/project in hand at such a huge premium. The onus is on the assessee to to prove the genuineness of the transaction as well credit worthiness of the share subscribers. The failure to produce the subscribers and statement of the director that the entire investment is bogus justifies the addition.