ACIT 5 (1), BHOPAL vs. M/S VINDHYA SOLVENT PVT. LTD., BHOPAL

In the result, Revenue’s appeal is dismissed

Bench: Ms. Madhumita Roy& Shri Bhagirath Mal Biyani

41,91,146 made under section 56(2)(viib) of the IT Act, is bad in law and merits to be quashed for the following reasons: • The Appellant has not invested the proceeds of the share issue in the shares of another Company • The Appellant is entitled to issue shares at a premium even though its liquidity position