Assessee received share capital and share premium money amounting to Rs. 16 crores from two private limited companies.  AO  held that the assessee had introduced its undisclosed income in guise of share application money. On appeal the Tribunal held that share applicants were regular income tax assesses. Share application Form and allotment letter were available on record-PAN details, bank account statements, audited financial statements and Income Tax acknowledgements of directors and share holders of share subscribing entities were placed on record.  Payments were made by account payee cheques. In none of transactions, cash was deposited in bank accounts of any of applicant companies before issuing cheques to assessee company. Share applicants were having substantial creditworthiness which was represented by a capital and reserve.  Both share applicant companies could not be termed as jama-kharchi companies. In case, Assessing Officer was dissatisfied about source of cash deposited in bank accounts of creditors, proper course would be to assess such credit in hands of creditors after making due enquiries from such creditors. since identity, creditworthiness and genuineness of transaction were established and Assessing Officer had not disproved materials placed before him, addition was not warranted. (AY. 2012-13)