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2018 (5) TMI 502 - AT - Income TaxAddition made on share premium u/s.68 - satisfactory explaination - nature of share premium - Justification of the excess premium received compared to its intrinsic value - Held that:- Revenue has already accepted the share capital to the tune of face value of equity shares amounting to ₹ 4.19 crores raised by the assessee from these two non-resident holding companies during the year as no additions were made, wherein by implication ingredients of Section 68 were deem to have been fulfilled and even ECB to the tune of ₹ 7.50 crore raised by the assessee from Asia Compound Limited, Hongkong during the impugned assessment year was accepted by Revenue and ingredients of Section 68 was accepted to be fulfilled by the assessee as no addition has been made by Revenue. The incriminating information used by the AO to discredit the valuation of ₹ 20 per equity shares arrived at by assessee using DCF method is based on perverse finding of facts recorded by the AO, which findings of the AO are already rejected by us. We have no hesitation in confirming/sustaining well reasoned appellate order of CIT(A) keeping in view factual matrix of the case and hence no addition is warranted towards share premium of ₹ 4,18,65,830/- received by the assessee from its holding companies namely Asian Compounds Limited, Hongkong and Finproject Asia Limited, Hongkong, who are non resident entities as the said share premium is on account capital transaction and is not an income within charging Sections of the 1961 Act. So far as deeming fiction of Section 68 is concerned, there is no reliable incriminating finding of fact available on record justifying our interference to the well reasoned order of learned CIT(A) which we sustain. Thus, the appellate order of learned CIT(A) stood confirmed. Revenue fails in this appeal which stood dismissed. - Decided against revenue.
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