Pursuant to a search, the Assessing Officer treated share capital and share premium received from a corporate investor as unexplained cash credits under section 68. The Tribunal held that the investor possessed sufficient share capital and reserves to make the investment, the entire contribution was made through normal banking channels without any cash deposits, and the assessee had established the identity, creditworthiness and genuineness of the transaction by documentary evidence. No incriminating material relating to the share capital was found during the search. As the assessment year preceded insertion of the proviso to section 68, the assessee was not required to establish the source of the source. Accordingly, the deletion of the addition by the Commissioner (Appeals) was upheld. (AY. 2011-12).<\/p>\n","protected":false},"excerpt":{"rendered":"
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