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TMI Blog2019 (1) TMI 2060X X X X Extracts X X X X X X X X Extracts X X X X ..... during the year for consideration other than cash.
Hence we hold that provision of section 68 are not applicable in the instant case and accordingly the entire addition deserves to be deleted which has rightly been done by the CIT(A) which does not require any interference. Accordingly, grounds raised by the revenue are dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the Tribunal, a copy of which was also placed before the Bench. 5. Learned Departmental Representative did not have much to say but he nevertheless relied upon the orders of the authorities below. 6. We see no reasons to take any other view of the matter than the view so taken by the Division Bench of this Tribunal in the case of M/s Anand Enterprises Ltd (supra), on identical facts, vide order dated 26.09.2018. In this order, the Tribunal has inter alia observed as follows: "4. We have heard the rival submissions. At the outset, we find that the assessee had not raised any share capital by receipt of cash consideration in the instant case. The shares were issued for consideration other than cash in lieu of assessee company ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant'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 effectively using the weblike scheme to plunder black money. For example introduction and use of black money in the present case may be at a different point of time and in different hands. The AO' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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, the nature of the transactions and the entries clearly show that no cash, in fact, flowed. It was further stressed that the transactions are above board. No outsid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 passing of cash should not have found a place in the cash book, but in the ledger account through journal entries. There is another self- contradiction in the Income-t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sible 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 is no dispute raised by the ld. AO with regard to number of shares; value thereon invested by the assessee company. We also find that the Co-ordinate Bench decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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