Dismissing the appeal of the revenue the Tribunal held that; If the overwhelming evidence in the form of audited accounts, ROC Form 2 &ROC Form 20B shows the ‘nature’ of receipt to be share premium, it has to be taken to be so. If the Department wants to contend that what is apparent is not real, the onus is on it to prove that it was the assessee’s own money which was routed through a third party. S. 68 does not (before & after the 2012 amendment) envisage the valuation of share premium. Consequently, the AO has no jurisdiction to determine whether the share premium is reasonable or not. (ITA No. 2317/Mum/2017, dt. 16.11.2018) (AY. 2012-13)
DCIT v. Pirmal Realty Pvt. Ltd. (Mum.)(Trib.), www.itatonline.org
S. 68 : Cash credits-Share premium-If the overwhelming evidence in the form of audited accounts, ROC Form 2 & ROC Form 20B shows the ‘nature’ of receipt to be share premium, it has to be taken to be so-If the Department wants to contend that what is apparent is not real, the onus is on it to prove that it was the assessee’s own money which was routed through a third party. S. 68 does not (before & after the 2012 amendment) envisage the valuation of share premium- Consequently, the AO has no jurisdiction to determine whether the share premium is reasonable or not.