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TMI Blog2019 (8) TMI 1922X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue are as follows: 1. The ld. CIT(A), Kolkata erred in law as well as in fact by deleting the addition of Rs. 1,29,00,000/- made u/s 68 of the Income Tax Act. 2. That the appellant craves the leave to add, alter, modify, include or delete any ground of appeal. 3. We heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld CIT(A) and other materials available on record. We note that this issue is squarely covered by the judgment of the Co-ordinate Bench of ITAT, Kolkata in the case of M/s Anand Enterprises Ltd. vs ITO in ITA No. 1614/Kol/2016 & C.O. No. 56/K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment are under a barter system. The AO has not refuted the appellant's claim that shares were allotted 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 pi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.20 lakhs. Therefore, the question of cash credit does not come in, there being no actual passing 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 actu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceipts of cash even when there was no cash available for such entries. This quite justifies the addition 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der to bring the companies in conformity with the said direction. Moreover, the direction of the 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 ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 4. We note that assessee company allotted 25,800 equity shares to 3 applicant companies for Rs. 1,29,00,000/- in consideration for purchase of equity shares held by these applicant companies. Photocopies of the agreements entered in this regard are enclosed in paper book. We note that the shares were allotted against consideration for purchase of equity shares held by these applicant companies; hence it is a barter system therefore, provisions of section 68 does not apply. We note that this issue is squarely covered by the judgment of Co-ordinate Bench of ITAT Kolkata in the case of M/s Anand Enterprises Ltd. vs ITO in ITA No. 1614/Kol/2016 & C.O. No. 56/Kol/2016 (supra). The Ld DR for the Revenue failed to controvert the findings of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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