During relevant assessment year the assessee had received fresh share application money from 16 entities. AO held that   just before debit entry favouring assessee, there was credit entry of similar amount and in some cases even cash was deposited just before debit entry. In some cases, confirmation was given by Companies in respect of purchase of shares as against said confirmation, assessee had shown only receipt of share application money pending allotment in names of those Companies. AO also held that SCL and SCEL were having their Offices in Ludhiana and have been filing returns in Ludhiana, but, auditors who conducted statutory audit of both those companies were situated in Kolkata and Bank Account, through which, investment was made were maintained in New Delhi.  In response to notice u/s 133(6) of the Act the assessee failed to produce Principal Officers of Companies situated in Delhi for verifying genuineness of transaction. Summons issued could not be served. Accordingly the AO held that the   Assessee failed to explain identity, creditworthiness of investors and genuineness of transaction in matter hence made addition u/s 68 of the Act. CIT(A) allowed assessee’s appeal however, ITAT confirmed the order of the AO. On appeal the High Court affirmed the order of the Tribunal. (AY. 2004 -05)