The ITAT ruled on the addition u/s 68 of share capital/premium ...

Addition u/s 68 was deleted for share capital from dummy entities. Assessee part of RPS Group. Source accepted after scrutiny.

Case Laws     Income Tax

June 7, 2024

The ITAT ruled on the addition u/s 68 of share capital/premium from three dummy entities related to RPS Group. The addition was substantive for RPS Group and protective for the assessee, a group company. The Tribunal considered assessment orders of the entities investing in the assessee, finding their sources acceptable. The Tribunal held that the assessee met the burden u/s 68, as the investing entities' assessments were accepted, supporting the legitimacy of the investments. The decision favored the assessee, upholding the CIT(A)'s findings.

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