2022 (6) TMI 73

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....s relevant for adjudication of this appeal are that the Assessee while declaring total income of Rs.9,24,08,720/- filed its return of income electronically on dated 08.01.2014. Thereafter, the case of the Assessee was selected for scrutiny under CASS and resulting into issuance of notice u/s. 143(2) of the Act on dated 04.09.2014. In the assessment proceedings, it was observed by the Assessing Officer that the Assessee company has shown unsecured loan of Rs.10 lacstaken from M/s. M.R. Infra Promoter Pvt. Ltd. For which the Assessee was asked to furnish the details of Income-tax Return, confirmation of account and copy of bank account statement with narration entries of the person who has given unsecured loan to prove the genuineness of the ....

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....ection would apply only to the credits received in money form and therefore it can be construed that section 68 is not applicable for general entries. Though, the ld. Commissioner accepted the additional evidence filed before it and also observed that the loan amounting to Rs.10 lacs was not received by the Assessee in its bank account, the credit of said amount of Rs.10 lacs in the books of appellant was on account of journal entry being loan given on the instruction of the Assessee by M/s. M.R. Infra PromoterPvt. Ltd. to M/s. M.R. Industries Pvt. Ltd. The Assessee during the course of appeal proceedings submitted the following evidence in respect of both the parties, namely, M/s. M.R. Infra Promoter Pvt. Ltd. and M/s. M.R. Industries P....

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.... Ltd. Vs. Income-tax Officer, Corporate ward 3(4) Chennai, (2018) 96 taxman.com 647(Madras) wherein the Assessee has shown certain amount as share premium as against "nil" in the immediately previous year ending on 31.03.2011. The valuation of shares allotted in settlement of the pre-existing liability and has been held to be taxable as unexplained cash credit by the Hon'ble Tribunal. However, the Hon'ble High Court has held that the transactions were only book transactions and there was no cash receipt and therefore, set aside the addition made u/s. 68 of the Act. The Hon'ble high Court further held that when there was no cash involved of the transaction of allotment of shares, the provisions of section 68 of the Act treating it as unexpla....