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2018 (11) TMI 1821 - AT - Income TaxAddition u/s 68 - unexplained cash credit - assessee failed to explain the sources of funds for the share capital received by it at a premium -allotment of shares in this case was a non-cash transactions and that they were subscribed through book entries - HELD THAT:- The undisputed fact is that shares were issued at a premium, as consideration for the purchase of shares from the share 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 [2018 (9) TMI 1779 - ITAT KOLKATA] wherein held this is a simple case of acquiring shares of certain companies from certain shareholders without paying any cash consideration and instead the consideration was settled through issuance of shares to the respective parties. In the balance sheet of the assessee company in the schedule to share capital, it is very clearly mentioned by way of note that the fresh share capital was raised during the year for consideration other than cash. Hence we hold that provision of section 68 are not applicable. Also see JATIA INVESTMENT CO. [1992 (8) TMI 16 - CALCUTTA HIGH COURT] - Decided in favour of assessee.
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