Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home List
← Previous Next →

2020 (3) TMI 1141

..... 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. [1992 (8) TMI 16 - CALCUTTA HIGH COURT] 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. - Decided in favour of assessee. - I.T.A. No. 2246/KOL/2017 - 18-3-2020 - Shri P.M. Jagtap, Vice-President And Shri A.T. Varkey, Judicial Member For the Appellant : Shri Imok .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... ssessee of having received share capital and share premium amount aggregating to ₹ 6,00,00,000/- was examined by the Assessing Officer. On such examination, he recorded the following findings/observations:- (1) The assessee company entered into a sham transaction with the investor to introduce the unaccounted income in form of share application/allotment. (2) The assessee company did not have any regular business transaction or regular acquaintance with the investor. (3) The investor has no reason to invest such huge amount in the business of the assessee. (4) The investor has no business transaction with the assessee company in past or future except this one time entry. (5) Assessee cannot withstand the cross examination before AO, i .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... ment in shares of Zest Marcom Private Ltd. vide two separate agreements both dated 27.03.2012 and that the assessee company did not receive any sum of money for such allotment of shares. The issue of the shares at premium of ₹ 6,00,00,000/- was recorded in the books of accounts of the Assessee Company by way of Book Entry. It is submitted on behalf of the Appellant Assessee Company that the shares were issued to two corporate entities namely M/s. Gokul Realtors Pvt. Ltd and M/s. Arman Advisory Pvt Ltd and in consideration of such allotment of shares no cash was received. The Appellant assessee company issued shares against the purchase of shares from the corporate entities; therefore, it is a book entry. According to the law of the la .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... r dated July 31, 2019, wherein a similar issue was decided by the Tribunal in favour of the assessee for the following reasons given in paragraph no. 6 to 7 of its order:- 6. 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. The learned DR at the time of hearing has not brought .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... onging to the same group. Since the said loans were required to be liquidated as per the RBI guidelines and there was no cash available with the NBFCs to repay the loans, the shares held by the three NBFCs were transferred to a partnership firm namely Jatia Investment Co., and the amount receivable against the said sale of shares was adjusted by the NBFCs against the loan amount payable to proprietary concern. The partnership firm of M/s. Jatia Investment Co. thus received shares from the three NBFCs and also took over the loans payable by the said NBFCs to the proprietary concern. These transactions were entered into in its books of account by the partnership firm through cash book by debiting the investment in shares and crediting the loa .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... enue has challenged the action of the ld. CIT(Appeals) in deleting the disallowance of ₹ 1,61,21,595/- made by the Assessing Officer on account of provisional power expenditure. 10. In its books of account, the provision was made by the assessee company on account of power charges payable to Damodar Valley Corporation (in short DVC ) for the period from January, 2012 to March, 2012. According to the Assessing Officer, this provision made by the assessee was contingent liability and not the actual liability. He, therefore, disallowed the power expenditure of ₹ 1,61,21,595/- claimed by the assesese on provisional basis. 11. The disallowance of ₹ 1,61,21,595/- made by the Assessing Officer on account of provision made for pow .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map ||