Dismissing the appeal of the revenue the Tribunal held that the consideration for issue of shares at premium by passing journal entries and it did not involve any credit to cash account . Accordingly there being no real inflow of cash involved in aforesaid transactions, amount of entry could not be treated as unexplained cash credit. (AY. 2012-13)
ITO v. Bhagwat Marcom (P.) Ltd. (2019) 178 ITD 684 (Kol.) (Trib.)
S. 68 : Cash credits–Share application money–Issue of shares at premium-Journal entries–No inflow of cash-Deletion of addition is held to be justified. [S. 131]