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2016 (9) TMI 1459 - AT - Income TaxAdditions u/s 68 - Share premium - AO found fault in the contention of the assessee that, considering the future cash flow for this proposed project, the assessee company valued its shares based on discounted cash flow method - AO has also found that shares were allotted without any benefit from the shareholders. - Held that:- this Tribunal is of the considered opinion that as rightly found by the CIT(Appeals), these are colourable device exercised by the assessee to reduce the tax liability. By way of introducing cash credit in the name of share premium and share capital, the assessee-company is making attempts to reduce the tax liability. In the absence of the details of shareholders and the basis for valuation of share at ₹ 5400/- per share, the CIT(Appeals) has rightly confirmed the addition made by the Assessing Officer. Section 68 of the Act clearly says that when the Assessing Officer found credit in the books of account and the assessee could not offer any explanation or the explanation offered by the assessee is not satisfactory, then the entries found in the books have to be treated as income of the assessee. - Decided against the assessee.
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