Answers On Topic: Share premium
  pre AY 13-14 share premium
Can AO add share premium u/s 68 when share capital for the same is not added ? any case law ? 56[2]viib was non existent in earlier years !


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  Share Premium
Assessee is a private limited company engaged in the business of construction. In the FY 2012-13, assessee company has issued 3,00,000 shares of Rs. 10/- each to various parties at a premium of Rs. 90/- per share and accordingly collected Rs. 30,00,000/- for share capital and Rs. 2,70,00,000/- on account of share premium. During the course of assessment proceedings, AO asked the details about issue of these shares to various companies at a premium and justify the genuineness of the transaction. The assessee company could not produce the evidence in support of the same. Therefore, the AO made the addition…


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