Assessing Officer made an addition under section 68 on account of share capital and share premium. Tribunal deleted the addition on the ground that the assessee had placed before the authorities a voluminous paper book which included PAN details, share application forms, allotment advices, bank statements, ITR acknowledgements, and audited financial statements of all nine corporate subscribers. Once the assessee offers a reasonable explanation supported by documentary evidence of identity and banking flow, the initial statutory onus stands discharged, and the burden then shifts squarely to revenue.  Assessing Officer cannot merely brush aside audited balance sheets and PAN details as ‘paper compliance’ without bringing on record contrary evidence to impeach the veracity of such documents. Further, non-appearance of subscribers’ directors cannot be a basis for the Assessing Officer’s addition under section 68 as personal appearance is not a statutory substitute for documented financial traceability, and if the Assessing Officer fails to utilise his powers under section 131 to compel attendance or to seek verification from creditors’ respective Assessing Officers, revenue cannot visit consequences of such investigative failure upon assessee. Order of Tribunal affirmed.  (AY. 2009-10)