Allowing the appeal of the revenue the Court held that ; The practice of conversion of un-accounted money through cloak of Share Capital/Premium must be subjected to careful scrutiny especially in private placement of shares. Filing primary evidence is not sufficient-The onus to establish credit worthiness of the investor companies is on the assessee.  There was no explanation whatsoever offered as to why the investor companies had applied for shares of the assessee company at high premium of Rs 190 per share even though the face value of the share was Rs 10 per share . None of the so -called investor companies established the source of funds from which the high share premium was invested . Mere mentioning of the income tax file number of an investor is not sufficient to discharge the onus under S.68 of the Act. Credit worthiness of the investor companies  was not  discharged .The Assessee is under legal obligation to prove the receipt of share capital/premium to the satisfaction of the AO, failure of which, would justify addition of the said amount to the income of the Assessee . (SLP (Cl) No. 29855 of 2018, dt. 05.03.2019)( AY.2009 -10)

(Note : Application to Re-call the judgement is dismissed . PCIT v. NRA Iron & Steel Pvt. Ltd.(SC),www.itatonline.org ( CA N0. 2463 OF 2019, dt. 25.10.2019) ( 2020) 186 DTR 249 (SC)