2024 (2) TMI 1482 - HC - Income Tax

Addition u/s 68 - unexplained cash credit in the form of share capital and share premium - CIT(A) deleted Addition on the ground that no cash or cheque was actually received by the respondent assessee and the purchase of share assets and allotment of share by the assessee was under barter system - HELD THAT - We have no hesitation to hold that substantial question of law raised in this appeal has to be answered against the appellant/revenue in the light of the decision of this Court in ITM/S ABHIJEET ENTERPRISE LTD. 2023 (11) TMI 1312 - CALCUTTA HIGH COURT wherein held cash did not pass at any stage though entries were made in cash book showing payment and receipts; but since the entries made a complete round, no passing of cash was necessary for the purpose of making entries. Further, it was held that if there was no real cash entry on credit side of the cash book by merely an emotional or fictitious cash entry, as admitted by the Income Tax Officer, there is no real credit to cash, to its cash book the question of inclusion of the amount of the entry as unexplained cash credit cannot arise - Decided in favour of assessee.

Summary

The appeal filed by the Income Tax Department against the order of the Income Tax Appellate Tribunal was dismissed by the Calcutta High Court. The court condoned the delay in filing the appeal and held that the substantial question of law raised must be answered against the appellant based on a previous court decision.