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11. PCIT – 6, Mumbai Vs. Essar Agrotech Ltd.
[ITXA No. 128 OF 2020, dated 29/07/2026, (Bom) (HC) ] A.Y.2012-13.
Section 68 – Cash Credit - share capital and share premium - identity, genuineness of transactions, and creditworthiness of the parties, have been proved by filing necessary details - complete details of the money trail to explain source of investment.
The Assessee-Company was engaged in the business of agricultural activity and cultivation of flowers, vegetables etc. and rendering services for maintenance of mango orchards. The Assessee-Company filed its Return of Income for A.Y.2012-13 on 30th September 2012 declaring its total income at Rs.11,07,178/. The case of the Assessee was completed under Section 143(3) on 30th March 2015 determining the total income of the Assessee at Rs.11,90,82,890/- by making various additions towards share capital and share premium under Section 68 of the Act, as well as disallowance of expenditure incurred in relation to exempt income under Section 14A read with Rule 8D(2)(ii) and 8D(2)(iii) of the Income Tax Rules, 1962 (the Rules).
Before the CIT(Appeals), the Assessee submitted that premium was a capital receipt and that the Assessee being a Company, was not required to prove the purpose or justifica
