https://www.taxtmi.com/caselaws?id=460585 ITAT Kolkata held that addition under section 68 for unexplained cash credit was erroneous where share capital increase resulted from court-approved amalgamation scheme. The tribunal found no actual share issuance or cash transaction occurred, only accounting adjustments combining share premium accounts of amalgamating companies. Since no cash was involved in the transaction, section 68 provisions were inapplicable. The AO wrongly invoked section 68 despite assessee discharging initial onus by explaining the adjustment entries. CIT(A) erred in confirming the addition. Appeal allowed. en-us Wed, 24 Apr 2019 00:00:00 +0530 Mon, 03 Feb 2025 18:58:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460585 ITAT Kolkata held that addition under section 68 for unexplained cash credit was erroneous where share capital increase resulted from court-approved amalgamation scheme. The tribunal found no actual share issuance or cash transaction occurred, only accounting adjustments combining share premium accounts of amalgamating companies. Since no cash was involved in the transaction, section 68 provisions were inapplicable. The AO wrongly invoked section 68 despite assessee discharging initial onus by explaining the adjustment entries. CIT(A) erred in confirming the addition. Appeal allowed. Case-Laws Income Tax Wed, 24 Apr 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460585