9911796707
TMI Blog2016 (6) TMI 804X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue is that on April 1, 2002, the assessee owed a sum of ₹ 76,98,000/- to four several creditors. The debt owed by the assessee to those creditors was converted into share applications money. It is as such not a case where money was introduced to the till of the assessee during the relevant previous year. The money had already found its way into the till of the assessee since prior to April 1, 2002. Only the nature of deposit had changed during the previous year. The money which was owed by the assessee by way of loan now became the capital of the assessee. We find that the views taken by the learned Tribunal are in conformity with section 68. Ms. Quereshi has also not been able to disclose any reason why any other view should be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ? (c) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal failed to consider that since the loan creditor has not given his consent to convert the unsecured loan to share application money treating the amount as cash credit under section 68 was justified? In so far as questions nos.(a) and (b) are concerned, the views expressed by the learned Tribunal are as follows: So far as the first limb of argument by the Ld. Senior Counsel that conversion of unsecured loan into the share application money does not come under the purview of Section 68, we find substantial force in the argument advanced by the Ld. Counsel as in the present case, there is no fresh credit. So far as ₹ 76,38,002/- i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h 31, 2003 which commenced on April 1, 2002. It is not the case of the revenue that during the period between April 1, 2002 and March 31, 2003, any sum was credited in the books of accounts of the assessee. The case of the revenue is that on April 1, 2002, the assessee owed a sum of ₹ 76,98,000/- to four several creditors. The debt owed by the assessee to those creditors was converted into share applications money. It is as such not a case where money was introduced to the till of the assessee during the relevant previous year. The money had already found its way into the till of the assessee since prior to April 1, 2002. Only the nature of deposit had changed during the previous year. The money which was owed by the assessee by way o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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