Dismissing the appeal of the department the tribunal held that, the assessee filed replies of all companies to the notice issued u/s. 133(6) to substantiate the identity of the companies, the assessee also furnished Income-tax returns filed by these companies for the year under consideration as well as placed on record the assessment orders passed u/s. 143(3) of some of these companies. Further, in three companies in whose case notices issued u/s. 133(6) were returned, and scrutiny proceedings u/s. 143(3)  were concluded either in the preceding or subsequent years. Moreover, despite the return of the notices, the AO did not raise any other objection or doubt questioning the identity of these investors. The companies that have invested in shares of the assessee had not been shown to have led to the manipulation and the identity of such directors had not been questioned. No evidence or material had been brought on record by the Department. The assessee has placed on record the source of funds received by all companies for investing in the shares of the assessee. The funds were received, inter alia, from the sale of equity shares of some other companies by these investors or from the refund of advances for the purchase of shares. Thus, the assessee had proved the source of source of the investors to satisfy the test of the creditworthiness of the investor and the genuineness of the transaction. (AY. 2010-11)