Dismissing the appeal of the assessee the Tribunal held that ; Share premium received can be assessed as undisclosed income if (a) directors are allotted shares at par while others are allotted at premium, (b) the high premium is not justified by a valuation report, (c) the high premium is not supported by the financials, (d) based on financials the value of shares is less and no genuine investor would invest at the premium, (e) there are discrepancies & abnormal features which show transaction as “made up” to camouflage real purpose. As regards reassessment is concern,the issue of second notice for reassessment was held to be valid . ( ITA No. 665/Bang/2017, dt. 09.02.2018)(AY. 2008-09)
Cornerstone Property Investments Pvt. Ltd. v. ITO ( 2018) 193 TTJ 58/( 2019) 70 ITR 693 (Bang)(Trib) , www.itatonline.org
S. 68: Cash credits- Share premium can be assessed as undisclosed income if directors are allotted the shares at par and other at premium without any justification .Addition was held to be justified .Issue of second notice for reassessment was held to be valid [ S.69, 147, 148 ]
[…] The Ld D.R drew our attention to the decision rendered by the co- ordinate bench in the case of M/s Cornerstone Property Investments P Ltd vs. ITO (ITA No.665/Bang/2017 dated 09-2-2018). He submitted that the issue before the Tribunal was related […]