2018 (4) TMI 1904 - SC - Income Tax

Addition u/s 68 - Tribunal deleted the addition u/s. 68 being share capital share premium received during the year when the AO held the same as unexplained cash credit - HC held that pre-amended Section 68 has held that where the Revenue urges that the amount of share application money has been received from bogus shareholders then it is for the Income Tax Officer to proceed by reopening the assessment of such shareholders and assessing them to tax in accordance with law. It does not entitle the Revenue to add the same to the assessee's income as unexplained cash credit. - HELD THAT - The special leave petition is disposed of in above terms. Pending applications, if any, are also stand disposed of.

Summary

The Supreme Court modified the impugned order and disposed of the special leave petition, considering the question related to the addition of Rs. 7,53,50,000 under section 68 of the Act.