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The Tax Publishers2020 TaxPub(DT) 0062 (Kol-Trib) INCOME TAX ACT, 1961
Section 68
Assessee had shown addition to shed and building along with land and land development and AO had not disputed clinching factual aspects of addition to corresponding fixed assets. There was further no quarrel that instead of making payment to concerned parties, assessee opted for issuing share capital. Thus, it was not an instance of outright sale of shares as projected at revenue's behest and thus, AO erred in law and on facts in treating above purchase of fixed assets followed payment by way of share capital subscription as an instance of unexplained cash credits under section 68.
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Income from undisclosed sources - Addition under section 68 - Issuance of shares against purchase of fixed assets treated as unexplained cash credit -
Assessee-company issued shares to certain parties. AO treated the same as unexplained credit under section 68 and made addition. Held: Assessee had shown addition to shed and building along with land and land development and AO had not disputed clinching factual aspects of addition to corresponding fixed assets. There was further no quarrel that instead of making payment to concerned parties, assessee opted for issuing share capital. Thus, it was not an instance of outright sale of shares as projected at revenue's behest and thus, AO erred in law and on facts in treating above purchase of fixed assets followed payment by way of share capital subscription as an instance of unexplained cash credits under section 68.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2015-16
IN THE ITAT, KOLKATA BENCH
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