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2022 (6) TMI 73 - ITAT DELHIAddition u/s 68 - Assessee could not prove the genuineness of the transaction and creditworthiness and identity of the person - Journal entry only in the books of account of the Assessee and in fact, no actual cash credit has been credited/received in the account of the Assessee - HELD THAT:- It is not in controversy here that the credit entry pertains to the journal entry only in the books of account of the Assessee and in fact, no actual cash credit has been credited/received in the account of the Assessee. Hon’ble Madras High court in the case of V.R. Global Energy Pvt.[2018 (8) TMI 866 - MADRAS HIGH COURT] 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 unexplained cash credit are not attracted. Assessee has also relied upon the judgment passed in the case of ITO ward 27(4) New Delhi vs. Zexus Air Services Pvt. Ltd. [2021 (4) TMI 1024 - ITAT DELHI] wherein also, the Hon’ble Court dealt with the identical issue and affirmed the deletion of similar addition made by the Assessing Officer by invoking the provisions of section 68 of the Act, however, opined that the addition, if any, has to be made in the hands of a person to whom the shares were allotted for his services rendered by debiting the accounts in the books. Therefore, the AO may take necessary steps for bringing this amount to tax in the hands of that person or his legal heirs in accordance with law. Appeal filed by the Assessee stands allowed.
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