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2024 (3) TMI 659 - AT - Income TaxUnexplained cash credit u/s 68 - increase in capital was added to the income of the assessee as unexplained cash credit - Addition made as assessee could not explain the increase in value of the remaining assets - HELD THAT:- There is increase in the value of liabilities with corresponding increase in the value of assets. In the absence of any finding that there is actual introduction of new capital through cash or banking channels, no addition could have been made u/s 68 since it is the primary requirement that there should be cash credit in the books of accounts. The same is missing in the present case. Therefore, the impugned addition as made by Ld. AO invoking the provisions of Sec.68 is not sustainable in law. The case law in the case of M/s V.R.Global Energy Pvt. Ltd. (2018 (8) TMI 866 - MADRAS HIGH COURT] duly supports the case of the assessee as concurred that when there was no cash involved in the transaction of allotment of shares, the provisions of Section 68 of the Act treating it as unexplained cash credit are not attracted. Therefore, we delete the impugned addition and allow the appeal of the assessee.
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