Allowing the appeal of the revenue, the Tribunal held that the share applicants had very meagre income and did not have creditworthiness for making such huge investments and genuineness of transactions were also not established from documentary evidences. Tribunal also observed that  the AO  reported that notice under S.133(6) issued to all the ten parties were complied and a statement of the directors as on date, were also recorded and they confirmed the fact of shares applied as well as share premium amounts paid. The AO   recorded two objections in respect of the documentary evidence was produced by the assessee from the shareholder’s bank account it was observed that amount was received by the parties immediately before the amounts was advanced to the assessee. The director of the shareholding companies produced before the AO  were directors as on the date and not the directors in the year in which share capital was collected. Addition is held to be justified. (AY.2006-07)