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2019 (9) TMI 1170 - AT - Income TaxAddition u/s 68 - treating the share capital and share premium received by the assessee during the year under consideration as unexplained cash credit - whether the transactions in question of issue of share capital with premium by the assessee-company involved any cash or not? - HELD THAT:- Section 68 is not applicable when the relevant transactions do not involve any cash and there is no credit to the Cash Account. We, therefore, hold that section 68 has no application to the transactions which does not involve cash and where there is no credit to cash account. Even though the ld. CIT(Appeals) in his impugned order has recorded a finding of fact that no money was received through banking channel by the assessee and there was no cash transaction in the case of the assessee as the shares were issued against the shares of another companies, there was no such finding recorded by the Assessing Officer in the assessment order. As rightly pointed out by the ld. D.R., no such case, in fact, was specifically made out by the assessee before the Assessing Officer challenging the applicability of section 68 on the ground that the relevant transactions of the issue of shares did not involve cash and it was not a case of receipt of any money through banking channel against the issue of shares. Neither the Directors of the assessee-company nor the Directors of the investor companies appeared before the AO for examination in response to summons issued under section 131 and the relevant details and documents were furnished by the Assessing Officer in an attempt to explain the relevant transactions as if section 68 was applicable. CIT(Appeals), however, overlooked this vital fact and allowed the relief to the assessee by deleting the addition made by the Assessing Officer under section 68 by relying on a new stand taken by the assessee in the light of additional evidence without giving any opportunity to the Assessing Officer to verify the same. Restore this issue to the file of the Assessing Officer for the limited purpose of verifying the claim of the assessee that the transactions in question of issue of shares did not involve any cash and there was no credit to the cash account and to decide the same accordingly in the light of the decision of the Hon’ble Jurisdictional High Court in the case of Jatia Investment Co.[1992 (8) TMI 16 - CALCUTTA HIGH COURT] - Decided in favour of revenue for statistical purposes.
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