COMMISSIONER OF INCOME TAX Vs. PRANAV FOUNDATIONS LTD

JUDGEMENT

(1.) This appeal is filed by the Revenue challenging the order of the Income Tax Appellate Tribunal Chennai 'C' Bench, dated 8.10.2010, made in ITA No.683/Mds/2010 for the assessment year 2007-2008, raising the following substantial question of law:

(2.) 1. The brief facts of the case are as under: The respondent/ assessee, it appears, received share application money and share premium money totaling to Rs.2.20 Crores from four parties, which are all limited companies. According to the department, the said amount was liable to be treated as unexplained credit under Section 68 of the Act. That was resisted by the assessee stating that the share application money and share premium money was received from limited companies and since the nature and source of the said amount has been established as contemplated under Section 68 of the Act, it is a bona fide transaction and should not be treated as unexplained credit under Section 68 of the Act. However, the Assessing Officer treated the share application money and share premium money as unexplained credit under Section 68 of the Act.

(3.) We have heard the learned Senior Standing Counsel appearing for the appellant and perused the order passed by the Tribunal and the authorities below.