addition of Rs. 6,00,00,000/- made by the Assessing Officer on account of share capital and share premium received by the assessee during the year under consideration by treating the same as unexplained cash credit under section 68. It is observed that its shares were issued by the assessee company during the year under consideration at premium to certain companies in lieu of the shares held by the said companies and there was thus no inflow of cash involved in these transactions.
no concrete or cogent reasons were given to justify the applicability of section 68 to the credits not involving any receipt or inflow of cash in the relevant year.uphold the impugned order of the ld. CIT(Appeals) deleting the addition of Rs. 6,00,00,000/- made by the Assessing Officer under section 68 on account of share capital and share premium. Grounds No. 1 to 3 of the Revenue’s appeal are accordingly dismissed
Sec. 68 of Income Tax Act, 1961— Cash credit - When the cash did not pass at any stage and since the respective parties did not receive cash nor did pay any cash, there was no real credit of cash in the cash book and the question of inclusion of the amount of the entry as unexplained cash credit could not arise. Appeal of the revenue against the order of CIT(A) in deleting the addition of Rs. 6,00,00,000/- made by the AO on account of share capital and share premium received by the assessee during the year under consideration by treating the same as unexplained cash credit under section 68, dismissed. - DEPUTY CIT V/s ALISHAN STEELS PVT. LIMITED - [2020] 23 ITCD Online 126 (ITAT-KOLKATA)
addition of Rs. 6,00,00,000/- made by the Assessing Officer on account of share capital and share premium received by the assessee during the year under consideration by treating the same as unexplained cash credit under section 68. It is observed that its shares were issued by the assessee company during the year under consideration at premium to certain companies in lieu of the shares held by the said companies and there was thus no inflow of cash involved in these transactions.
no concrete or cogent reasons were given to justify the applicability of section 68 to the credits not involving any receipt or inflow of cash in the relevant year.uphold the impugned order of the ld. CIT(Appeals) deleting the addition of Rs. 6,00,00,000/- made by the Assessing Officer under section 68 on account of share capital and share premium. Grounds No. 1 to 3 of the Revenue’s appeal are accordingly dismissed
Sec. 68 of Income Tax Act, 1961— Cash credit - When the cash did not pass at any stage and since the respective parties did not receive cash nor did pay any cash, there was no real credit of cash in the cash book and the question of inclusion of the amount of the entry as unexplained cash credit could not arise. Appeal of the revenue against the order of CIT(A) in deleting the addition of Rs. 6,00,00,000/- made by the AO on account of share capital and share premium received by the assessee during the year under consideration by treating the same as unexplained cash credit under section 68, dismissed. - DEPUTY CIT V/s ALISHAN STEELS PVT. LIMITED - [2020] 23 ITCD Online 126 (ITAT-KOLKATA)