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TMI Blog2019 (1) TMI 2062X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act), dated 20-03-2015. 2. When this appeal was called out for hearing, learned counsel for the assessee invited our attention to the order dated 26-09-2018 in the case of ITO, W-13(1), Kolkata Vs. M/s. Anand Enterprises Ltd, for the A.Y 2012-13, passed by the Division Bench (ITAT, Kolkata), whereby the issue of deletion of addition made u/s 68 of the Act on account of Barter transaction ( Issue of shares for consideration other than cash) was discussed and adjudicated. 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. 3. Learned Departmental Representative did not have much to say but he nevertheless relied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... serving as under: "6. On consideration of the AR's submission, especially the portion reproduced above, it is seen that section 68 of I.T. Act, 1961 does not apply to cases of purchase of share assets and allotment of shares by the appellant when purchase and allotment 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 cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to GB and Co. and the three non-financial companies of the group got discharged. Learned counsel also emphasised that, at the worst, it can be said that the assessee-firm has received valuable assets being the said shares of the equivalent value of the debt taken over by it from the companies, i.e. Rs. 11.20 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 co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by journal entries and not cash entries. He urged that the purported motive of the entries being the reduction of loans of the three limited companies does not explain the whole matter, because the entries are cash entries. The fact remains that, at every stage, the parties showed the payments and receipts 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 passin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal's refusal to take notice of the directions of the Reserve Bank, it is not correct for the Tribunal to hold that the said document was a new evidence in the true sense of the term. The assessee has been consistently pleading before the lower authorities that the entries had to be made in order 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 ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r than cash. Hence we hold that provision of section 68 of the Act are not applicable in the instant case and accordingly the entire addition deserves to be deleted which has rightly been done by the ld. CIT(A) which does not require any interference. Accordingly, grounds raised by the revenue are dismissed." 5. As the issue is squarely covered in favour of assessee by the judgment of the coordinate Bench in M/s Anand Enterprises Ltd.(Supra) and there is no change in facts and law and the ld. DR for the revenue has not controverted the findings of the order of Tribunal (supra). Therefore, respectfully following the order of the coordinate Bench in M/s Anand Enterprises Ltd. (Supra), we uphold the impugned order of the ld. CIT(A) and dismis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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