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2020 (5) TMI 489 - AT - Income TaxAddition u/s 68 - transaction of receipt of money in the form of shares of other private limited companies - HELD THAT:- No infirmity in the order of the learned assessing officer in making addition under section 68. The more surprisingly the assessee being a company which does not have any stream of revenue is engaging in buying the shares of private limited company and selling the shares of private limited companies speaks volume about the nature of the activities carried on. The additional arguments raised by the assessee in the additional grounds are also dealt with. In the first argument, assessee has submitted that mere book entry without actual receipt of money cannot be covered under the definition of section 68. It is apparent that in the books of accounts of the assessee has credited as sales consideration. Thus sum is found credited in the books of assessee. From Thirst plantations private limited, the assessee has received the shares subsequently, therefore it is apparent that against the money receivable from Thirst plantations private limited, which is sale consideration credit in the books of account, the debit arises in the account of Thirst plantations private limited, which has been subsequently realized by further receipt of shares by the assessee. There is actual transaction of receipt of money in the form of shares of other private limited companies. Provisions of section 68 would be applied on the sale consideration credited in the books of accounts and not on the debit arising in the account of thirst plantations private limited. All judicial precedents relied up on by the assessee are distinguishable on facts. In view of this we dismiss all the grounds of appeal raised by the assessee and confirmed the action of the learned assessing officer and the learned CIT – A with respect to the addition under section 68 - Appeal filed by the assessee is dismissed.
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