Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (3) TMI 820 - AT - Income TaxAddition on account of advance against share capital received in FY 2003-04 - Held that:- The facts are undisputed that the assessee had received the impugned amount on account of share application money which has been written-back as the shares were not allotted. This issue is no more res-integra as Hon’ble Bombay High Court in the cases of Softworks Computers Pvt Ltd (2013 (1) TMI 89 - BOMBAY HIGH COURT ) wherein it is held that the amount received on account of share capital can neither be treated as taxable either u/s 41(1) or u/s 28(iv) if the same is written-back in the books of account. It is further noted that similar view has been taken by Hon’ble Madras High Court in the case of Skraemeco Regent Ltd (2010 (11) TMI 43 - Madras High Court ) wherein detailed discussion was made on section 28(iv) as well as section 41(1) and it was held that amount received for the purpose of acquiring capital asset did not constitute trading liability, and therefore, the same was not taxable u/s 41(1) or section 28(iv) of the Act. - Decided against revenue
|