Assessee received share application money from non-residents. The AO  held that act of receiving share application money in excess of authorized share capital of assessee was not in accordance with law and, therefore, money received could not be considered as towards share application money accordingly he treated money received from non-residents as income of assessee and brought same to tax under head income from other sources.

The Tribunal.  Held that, the details of receipt of share application money on various dates given.  Further assessee had applied to the ROC for increase in authorized share capital of equity shares and application money received from various share applicants was converted into equity shares under Board Resolution allotting shares to the various share applicants. Hence, there is no provision for invoking S.68.  Further provisions of 56(2)(viib) are applicable only for receipt of consideration for issue of shares from a resident and not in the case of a non-resident.   (AY.  2015-16)