When are sums of money credited as Share Capital/Premium?

IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD BENCHES “B”: HYDERABAD
(THROUGH VIRTUAL CONFERENCE)
BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER
AND
SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER

ITA No. 863/H/2019
Assessment Year: 2012-13

Avatar Metals Pvt. Ltd.,
Hyderabad.
PAN – AAJCA 7530 R

vs

Income-tax Officer,
Ward – 1(2), Hyderabad

Assessee by:
Shri Mohd. Afzal
Revenue by:
Shri Rohit Mujumdar
Date of hearing:
11/08/2021
Date of pronouncement:
30/08/2021
O R D E R

Briefly the facts of the case are that the assessee filed his return of income for the AY 2012-13 on 29/09/2012 declaring NIL income. As per information received from DCIT, Mumbai, the assessee received accommodation entries to the tune of Rs. 7,30,00,000/-. The assessee claimed exempt income u/s 10(38) of the Act of Rs. 1,39,78,696/- which included Rs. 1,08,51,042/- towards long term capital gains on the sale of shares.

2.  When the assessee preferred an appeal before the CIT(A), the CIT(A) confirmed the order of the AO. He relied on the judgement of the Hon’ble Supreme Court in the case of Pr. CIT Vs. NRA Iron and Steel Pvt. Ltd. vide judgment dated 05/03/2019.

3. The above case of Hon’ble Supreme Court aptly applies to the case of the assessee in hand. Even before us also, the assessee failed to fulfill the conditions laid down u/s 68 of the Act by way of documentary evidence and we do not find any merit in the submissions made before us. Therefore, we do not find any infirmity in the order of the CIT(A), who followed the judgment of the Hon’ble Supreme Court quoted supra to confirm the order of the AO and accordingly, upholding the order of the CIT(A), we dismiss the grounds raised by the assessee on this issue.

4. In the result, appeal of the assessee is dismissed.
Pronounced in the open court on 30th August, 2021.

Please find attached the enclosed file for the full judgement