Assessee-company, governed by the Companies Act, 2013, during the relevant year raised about Rs. 9 crores from seven share applicants by issuing 90,000 shares of face value Rs. 10 at a premium of Rs. 990 per share. It recorded issue and allotment in its books and filed return of allotment (Form No. 2) with the Ministry of Corporate Affairs. In assessment proceedings, it furnished return filing acknowledgements, audited balance sheets and bank statements of investors, confirmations and source-of-fund details from subscribers, along with its own audited balance sheet and bank statement.Assessing Officer issued summons under Section 131 to directors to appear in person. Directors did not appear but submitted requisitioned materials. Assessing Officer doubted the identity and creditworthiness of shareholders and the genuineness of transactions, and completed assessment under Section 143(3) by adding entire share capital/premium received from seven shareholders as unexplained cash credits under Section 68. Tribunal deleted the addition.On appeal, the Court held that since shareholders who applied for shares in assessee stood identified, the source of funds stood satisfied, the assessee reflected the entire issue and allotment of shares at a premium in its books of account and submitted the same contemporaneously to the statutory authority, namely, the Ministry of Corporate Affairs, the addition made by the Assessing Officer was not justified. Court also held that, in cases of non-appearance of directors of the assessee before the Assessing Officer, addition was not justified. (AY. 2012-13)