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2019 (9) TMI 338 - AT - Income TaxAdditions u/s 68 - Addition under the head ‘Other current liability’ - HELD THAT:- The details of receipt of share application money on various dates. The assessee had applied to the Registrar of Companies for increase in authorized share capital of 32,90,000 equity shares and application money received from various share applicants was converted into equity shares under Board Resolution allotting shares to the various share applicants. No case has been made out by the revenue for invoking the provisions of section 68. As far as invoking the provisions of section 56(2)(viib) - as rightly contended by assessee, those provisions are applicable only for receipt of consideration for issue of shares from a resident and not in the case of a non-resident. In the present case, the consideration for issue of share application money was received from non-residents. Secondly, those provisions are applicable only when the shares are issues over and above the face value of such shares. Admittedly, the shares have been subscribed at face value and there is no premium whatsoever. There is no other basis on which the addition made by the AO and confirmed by the CIT(Appeals) can be sustained. Addition made by the AO and confirmed by the CIT(A) is unsustainable and the same is directed to be deleted. - Decided in favour of assessee.
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