Dismissing the appeal of the revenue , Tribunal held that, addition cannot be made in respect  of share premium received by assessee from its holding companies as said share premium was on account of capital transaction and was not an income within charging sections of Act . Assessee also supported the fair value of equity shares with a certificate issued by a chartered accountant using DCF method which was approved method as prescribed by RBI and assessee had filed its bank statements as well as FIRC issued by its bankers as evidence and thus, no fault lay with assessee in issuing equity shares .  Therefore, no addition was warranted towards share premium received by assessee from its holding companies as said share premium was on account of capital transaction and was not an income within charging sections of Act .S 56(2)(viib) read with S. 2(24)(xvi) are not made applicable to shares issued to non-residents mainly to encourage foreign investments. Addition also cannot be u/s 68 of the Act as the assessee has filed  bank statements as well as FIRC issued by its bankers as evidence .The Tribunal also held that the ,assessee did utilize proceeds of funds raised towards share premium for setting up manufacturing unit for manufacturing soles for footwear for which business purposes funds were stated to be entrusted by shareholders , therefore addition can not be made as income from other sources.   ( AY.2012-13)