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TMI Blog2020 (9) TMI 1316X X X X Extracts X X X X X X X X Extracts X X X X ..... short the "Act") dated 25 /03/2015. 2. The grounds of appeal raised by the Revenue are as follows: 1) That on the facts and circumstances of the case and on Law Ld. CIT(A) has erred in granting relief to the assessee in respect of addition made u/s 68 of Rs.9,93,00,000/- by the AO for lack of explanation and for want of satisfaction, simultaneously, in respect of: i) Identity of the persons with whom transactions took place. ii) Genuineness of transactions for which credit entries entered in the books of Accounts. iii) Capacity of the persons or their creditworthiness from whom such receipts were recorded. 2) That on the facts and circumstances of the case and on Law Ld. CIT(A) has erred in granting relief to the assessee wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... avour of assessee and held that when assessee had allotted shares for consideration other than cash then provisions of section 68 ( cash credit ) does not apply. Learned counsel for the assessee submitted that the present appeal is squarely covered by the aforesaid order of the Tribunal, a copy of which was also placed before the Bench. 4. Learned Departmental Representative relied upon the orders of the authorities below. 5. We see no reasons to take any other view of the matter than the view so taken by the Division Bench of this Tribunal inthe case of ITO, Ward-13(1), Kolkata Vs. M/s Anand Enterprises Ltd. in ITA No. 1614/Kol/2016 for A.Y. 2012-13. In this order, the Tribunal has inter alia observed as follows: "4. We have heard the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in exchange for acquisition of shares by the appellant from the companies which surrendered such shares to the appellant. Though as per the AO to apply section 68 to make the said addition in the appellant's hand. Transactions purportedly executed by entry operators involve multiple layers and other complexities, introducing delays in introduction of unaccounted cash/money and multiple players being incorporated entities. Measures taken by the AO in the course of the assessment proceeding falls much short of what is required to be done in such case laws, which have evolved on this issue, call for concerted actions on the part of the AO pinpointing utilization of unexplained/unaccounted/untaxed money and the players and the beneficiaries ef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or receipt of cash. In other words, the transactions are mere book entries. It was contended that the fact that the entries passed through the cash book could not detract from or efface the essential nature of the entries. It was also urged that the entries were passed through the cash book so that the repayment of loans by the said three companies could be established before the Reserve Bank of India. But, according to Shri Bajoria, that does not mean that it amounts to an artifice employed to deceive any authorities, because the transactions showing the amount as received in cash and paid away spontaneously and simultaneously were not actual but only notional. He, however, stated that, as far as the question of section 68 is concerned, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition as sustained by the Tribunal. We have perused the assessment order carefully. We find that cash did not pass at any stage though entries were made in the cash book showing payments and receipts ; but since the entries made a complete round, no passing of cash was necessary for the purpose of making the entries. That there was no passing of cash is also admitted by the Income- tax Officer himself. We have already extracted the observation of the Income-tax Officer in paragraph 14 of his assessment order. The Income- tax Officer has clearly opined that all the respective parties did not receive cash nor did pay cash as none had any cash for the purpose. The only point in the assessment order is that the entries not involving the pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reserve Bank is a public document within the meaning of section 74 of the Evidence Act, 1872. Documents of a public nature and public authority are generally admissible in evidence subject to the mode of proving them as laid down in sections 76 and 78 of the Evidence Act. In our view, the effect and import of the transactions is that the assessee took over the liability of the aforesaid non-financial companies to GB and Co. in exchange for the shares as aforesaid. In the premises, we answer all the questions, in the affirmative and in favour of the assessee and against the Revenue." 4.2. It would be pertinent to note that in the instant case, the ld. AO had not doubted the investment made in shares by the assessee company. There i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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