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TMI Blog2020 (2) TMI 1480X X X X Extracts X X X X X X X X Extracts X X X X ..... We note that this Tribunal has already held that section 68 of the Act is not attracted in such transfer and the Tribunal in M/S. SUNGLOW DEALCOM PRIVATE LIMITED. [ 2018 (11) TMI 1821 - ITAT KOLKATA] . We hold that the AO had erroneously invoked the provisions of section 68 of the Act to the facts of the instant case, which, in our considered opinion, are not at all applicable herein. This is a simple case of acquiring shares of certain companies from certain shareholders without paying any cash consideration and instead, the consideration was settled through issuance of shares to the respective parties. Hence we hold that provisions of section 68 of the Act are not applicable in the instant case and accordingly, the entire addition dese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee, no sum of money has been collected for transfer of shares, whereas shares have been received by the assessee in lieu of exchange of its shares, therefore, no addition u/s. 68 of the Act can be made. In support of its submission, the Ld. AR relied on the following case laws: i) Jatia Investment Co. Vs. CIT 206 ITR 718(Cal); ii) V. R. Global Energy Pvt. Ltd. Vs. ITO, 407 ITR 145 (Mad); iii) ITAT, Kolkata Bench in the case of ITO Vs. M/s. Saffron Comtrade Pvt. Ltd. dated 28.08.2019; iv) ITAT, Kolkata bench in the case of ITO Vs. M/s. Pansu Commercial Pvt. Ltd. dated 08.05.2019 and v) ITAT, Kolkata Bench in the case of ITO Vs. M/s. Sunglow Dealcom Pvt. Ltd. dated 16.11.2018. 5. We note that this issue is no longer res i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the above companies have filed replies before the Assessing Officer to the notice issued u/s 133(6) of the Act. He further pointed out that the ld. CIT(A) called for a remand report the Assessing Officer had not disputed the identity, creditworthiness of the share subscribers as well as the genuineness of the transactions. He relied on the order of the ld. CIT(A). 4.2. The undisputed fact is that shares were issued at a premium, as consideration for the purchase of shares from the share applicant companies. This issue is squarely covered by the decision of the Kolkata C Bench of the Tribunal in the case of ITO vs. M/s. Anand Enterprises Ltd., ITA No. 1614/Kol/2016 C.O. No.56/Kol/2016; dt. 26/09/2018, wherein under identical circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... industries Accounts of assessee-firm showed that it had borrowed certain amount from GB, a proprietary concern of one of its partners JM, which was invested in purchase of shares ITO found that GB had no cash balance to advance said amount to assessee He, thus, concluded that source of funds for purchase of shares by assessee was not explained, and consequently, assessed that amount as income from undisclosed sources It was contended by assessee that notional cash entries were made to reduce indebtedness of three companies of J Group to GB in order to comply with certain directions of RBI Assessee-firm substituted three companies of J Group as debtor to GB It was further stated that question of cash credit did not arise, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... win Tiles India (P.) Ltd. v. Dy. CIT [2016] 382 ITR 291/237 Taxman 342/66 taxmann.com 8 (Guj.); (v) B.R. Petrochem (P.) Ltd. v. ITO [2017] 81 taxmann.com 424 (Mad.); and (vi) Rajmandir Estates (P.) Ltd. v. Pr. CIT [2016] 386 ITR 162/240 Taxman 306/70 taxmann.com 124 (Cal.), cited on behalf of the respondent are distinguishable, in that the cash credits towards share capital were admittedly only by way of book adjustment and not actual receipts which could not be substantiated as receipts towards share subscription money. 5. Applying the propositions of law laid down in the above cases to the facts of this case, we uphold the order of the ld. First Appellate Authority and dismiss this appeal of the revenue. 6. In the facts and c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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