In the course of assessment proceedings the assessee was asked to substantiate the identity, credit worthiness and genuineness of the share capital received. The assessee furnished list of share applicants with full names and addresses. The Assessing Officer issued notices under section 133(6). Reply to all the notices were received by the Assessing Officer along with ledger account, bank statements and copies of Income tax returns. The Assessing Officer deputed an Income tax Inspector for making further enquiry. The Inspector submitted his report stating that the above said subscriber companies’ addresses were fake and they did not exist at the given addresses. Thereafter, the Assessing Officer asked the assessee to produce the people from whom the share application money had been received. On receiving no plausible reply and on the strength of the Inspector’s report, the Assessing Officer came to the conclusion that the assessee grossly failed to identify the share applicants and, drawing support from the provisions of section 68, he made the addition under section 68. CIT(A) also affirmed the order of Assessing Officer. On appeal the Tribunal held that, once the assessee-company filed complete details before the Assessing Officer, then the initial onus upon the assessee-company has been discharged to prove the identity of the investor. The assessee company had provided the balance sheet of the investor company’s along with their company profiles and details with the Registrar of Companies. The subscriber companies themselves have provided the bank statements and their respective PAN details. It is not the case of the revenue that the subscriber companies are name lenders or entry providers. Their details are available on public domain on the website of the Registrar of Companies. The paper book reveal the proportion of investment made by the share applicant companies in the share capital of the assessee-company. The percentage of their investment ranges from 5 per cent to 40 per cent, which means that the share applicant company portfolios include investment in other companies also. There is nothing on record to suggest that the other investments made by the share applicant companies have been treated as bogus in the hands of other companies. The assessee company discharged the burden hence addition confirmed by the CIT(A) is deleted. (AY. 2010-11)