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2018 (7) TMI 1610 - AT - Income TaxAddition towards undisclosed income being write back of redeemable non cumulative preference shares - addition on the basis of admission of the assessee during the course of search - Held that:- In this case, facts are identical to the case already considered by the co-ordinate bench in the case of Nalwa Chrome Pvt Ltd. [2017 (3) TMI 820 - ITAT MUMBAI] . The AO has made addition towards redeemable non cumulative preference shares u/s 28(iv) of the Income-tax Act, 1961. Since, the co-ordinate bench has already taken a view that share capital receipt cannot be taxed either u/s 28(iv) or 41(1) of the Act. Therefore, being consistent with the view taken by the co-ordinate bench, we are of the considered view that write back of preference share capital cannot be taxed u/s 28(iv) of the Income-tax Act, 1961. The Ld.CIT(A), after considering relevant facts has rightly deleted addition made by the AO. We do not find any error in the order of the CIT(A). Hence, we are inclined to uphold the findings of CIT(A) and dismiss the appeal filed by the revenue.
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