TaxTMI 
TaxTMI 
2018 (11) TMI 1821
X X X X Extracts X X X X
X X X X Extracts X X X X
.... a company and is in the business of investment. An addition of unexplained cash credit u/s 68 of the Act, were made by the Assessing Officer on the ground that the assessee failed to explain the sources of funds for the share capital received by it at a premium. On appeal the ld. First Appellate Authority, held that the allotment of shares in this case was a non-cash transactions and that they were subscribed through book entries. He held that Section 68 of the Act, does not apply as the assessee has proved the identity, creditworthiness and genuineness of the transactions. He gave a factual finding and deleted the addition. 2.1. Aggrieved, the revenue is in appeal before us. 3. We have heard rival contentions. On careful consideration o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hare applicant companies. This issue is squarely covered by the decision of the Kolkata 'C' Bench of the Tribunal in the case of ITO vs. M/s. Anand Enterprises Ltd., ITA No. 1614/Kol/2016 & C.O. No.56/Kol/2016; dt. 26/09/2018, wherein under identical circumstances, at para 4.3. it was held as follows:- "4.3. In view of the aforesaid observations, in the facts and circumstances of the case and respectfully following the aforesaid judicial precedents relied upon hereinabove, we hold that the Id. AO had erroneously invoked the provisions of section 68 of the Act to the facts of the instant case, which, in our considered opinion, are not at all applicable herein. This is a simple case of acquiring shares of certain companies from certain shar....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ebtedness of three companies of 'J' Group to GB in order to comply with certain directions of RBI - Assessee-firm substituted three companies of 'J' Group as debtor to GB - It was further stated that question of cash credit did not arise, there being no actual passing or receipt of cash but transactions were mere book entries - Whether, in aforesaid circumstances, effect and import of transaction was that assessee took over liability of aforesaid three companies to 'GB' in exchange for shares and, therefore, amount of loan in question could not be treated as assessee's income from undisclosed sources - Held, yes" 4.3. Recently, the Hon'ble Madras High Court in the case of V. R. Global Energy (P.) Ltd. v. Income-tax Officer, Corporate Ward ....