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2019 (8) TMI 649 - ITAT KOLKATAAddition of share capital and share premium as unexplained cash credit u/s 68 - no cash was interchanged - The shares were allotted against the acquisition of investments under the agreements - in response to summon u/s. 131 no one appeared but submitted their response by registered post to AO - HELD THAT:- We have considered the rival submissions and also perused the relevant material available on record. It is observed that its shares were issued by the assessee company during the year under consideration at premium to certain companies in lieu of the shares held by the said companies and there was thus no inflow of cash involved in these transactions. The said transactions were entered into in the books of account of the assessee company by way of journal entries and it did not involve any credit to the cash amount. Hon’ble Calcutta High Court in JATIA INVESTMENT CO. VERSUS COMMISSIONER OF INCOME-TAX [1992 (8) TMI 16 - CALCUTTA HIGH COURT] has held that when the cash did not pass at any stage and since the respective parties did not receive cash nor did pay any cash, there was no real credit of cash in the cash book and the question of inclusion of the amount of the entry as unexplained cash credit could not arise. In our opinion, the ratio of this decision of the Hon’ble Jurisdictional High Court in the case of Jatia Investment Co. (supra) is squarely applicable in the facts of the present case and the Ld. CIT(A) was fully justified in deleting the addition made by the AO u/s 68 by holding that the said provision was not applicable. - the appeal of the Revenue is dismissed
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