Home › Tax Laws › V. R. Global Energy Pvt. Ltd. v. ITO ( 2018) 407 ITR 145 / 170 DTR 412 / 305 CTR 228 / 258 Taxman 5 ( Mad)(HC), www.itatonline.org Editorial: SLP of revenue is dismissed ITO v. V. R. Global Energy Pvt. Ltd. ( 2020) 268 Taxman 392 (SC)

V. R. Global Energy Pvt. Ltd. v. ITO ( 2018) 407 ITR 145 / 170 DTR 412 / 305 CTR 228 / 258 Taxman 5 ( Mad)(HC), www.itatonline.org Editorial: SLP of revenue is dismissed ITO v. V. R. Global Energy Pvt. Ltd. ( 2020) 268 Taxman 392 (SC)

S. 68: Cash credits- Share capital- 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

Allowing the appeal of the assessee the Court held that ;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. ( TA No. 246 of 2017, dt. 06.08.2018) ( AY.2012-13)

[Click here to download PDF file]http://itatonline.org/archives/wp-content/uploads/VR-Global-Bogus-Share-Capital.pdf