2010 (12) TMI 58 - HC - Income Tax

Assessee received application for allotting shares - shares were allotted - assessing officer added this amount in the income of the assessee - on the ground that own money has been routed by the assessee - Held that - assessee had produced the names, addresses, PAN account details and affidavit, resolution of the Board of Directors and also necessary documents filed before the Registrar of the Companies that had invested in the shares of the assessee - There is no illegality - Appeal is dismissed

Summary

The High Court of Allahabad dismissed appeals by the Income Tax Department regarding the addition of share allotment amount to the income of a company, finding no merit in the appeals. The Tribunal ruled in favor of the company based on evidence provided, including names, addresses, PAN details, and board resolutions.