Section 68 not apply to shares allotted for a liability if no actual cash is exchanged

PCIT Vs Abhijeet Enterprise Ltd. (Calcutta High Court) Calcutta HC: Share Allotment Against Liability Not a ‘Cash Credit’ Under Section 68 Calcutta High Court, in the case of the Principal Commissioner of Income Tax (PCIT) vs. Abhijeet Enterprise Ltd., has affirmed that the issuance of company shares to settle an existing liability does not constitute an “unexplained cash credit” under Section 68 of the Income Tax Act, 1961, when no actual cash is transacted. The court dismissed the revenue department’s appeal, upholding an earlier order from the Income Tax Appell...