| COURT: | Madras High Court |
| CORAM: | Abdul Quddhose J, Indira Banerjee CJ |
| SECTION(S): | 68 |
| GENRE: | Domestic Tax |
| CATCH WORDS: | bogus share capital, share premium, unexplained cash credit |
| COUNSEL: | R. Vijayaraghavan |
| DATE: | August 6, 2018 (Date of pronouncement) |
| DATE: | August 21, 2018 (Date of publication) |
| AY: | 2012-13 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 68: If no cash is involved in the transaction of allotment of shares and it is a case of book adjustment, provisions of s. 68 treating it as unexplained cash credit are not attracted. Even if it were to be assumed that the subscribers to the increased share capital are not genuine, the amount of share capital would in no circumstances be regard as undisclosed income of the company | |
Counsel argued, and rightly, that when there was no cash involved in the transaction of allotment of shares, provisions of Section 68 of the said Act treating it as unexplained cash credit are not attracted
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