Shankar Traders & Distributors (P.) Ltd. v. ITO (2025) 210 ITD 41 (Kol.) (Trib.)

S. 68: Cash credits-Share application-Share premium-Identity and creditworthiness and genuineness is established-Addition is deleted.

Where assessee, an NBFC issued equity shares with a premium and Assessing Officer treated share capital as unexplained cash credits under section 68 due to concerns over low revenue, since assessee demonstrated identity, creditworthiness, and genuineness of share applicants, who had sufficient net worth, and were registered with MCA, addition made under section 68 was to be deleted (AY.2013-14)

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