The assessee filed its return of income which was processed under section 143(1). Subsequently, the Assessing Officer issued a reopening notice on ground that the assessee had issued shares to its director at Rs. 10 whereas shares were alloted to company WPIPL at a premium of Rs. 990. It further passed reassessment order under section 68 on account of said share premium amount. On appeal, the Commissioner (Appeals) as well as the Tribunal also upheld the addition made by the Assessing Officer. On appeal the Court held that the  assessee had produced various documents including copies of bank statements of  Walden Properties Investment Pvt Ltd.(WPIPL)  copies of share certificates, copy of its annual return filed before Registrar, copy of assessment order under section 143 read with section 153C in case of WPIPL. Assessee had also annexed balance sheet of WPIPL which showed that it had taken term loan of huge amount.  WPIPL also had reserves and surpluses of huge amount and its investments in various mutual funds, national savings scheme and equity shares including investment with assessee was also of huge amount. Transfer of funds was made through bank transactions. Accordingly  on facts, assessee had proved identity and creditworthiness of investor and genuineness of transactions and, thus, impugned addition under section 68 made on account of share premium received by assessee is  set aside.  (AY. 2008-09)