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Income Tax - Highlights / Catch Notes

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Addition u/s 68 - accommodation entry - issue of shares for ...


Court Confirms Additions u/s 68: Book Entry Adjustments Only Allowed for Pre-Existing Liabilities or Assets.

March 18, 2023

Case Laws     Income Tax     AT

Addition u/s 68 - accommodation entry - issue of shares for consideration other than 'cash' - "Adjustment by way of book entry" can only be in the case where there is already some liability/asset/entry in books of account's which is to be adjusted. However, in the instant case that was not the case. There was no entry subsisting in the books of account's which was adjusted.This was a fresh issue of equity shares for consideration other than cash, and was not issued against any of liability in the books of accounts. - additions confirmed - AT

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