Section 68 share capital addition deleted where subscribers were tax-compliant and transactions moved through banking channels.

The Tribunal's deletion of the section 68 addition for share capital and premium was upheld because the assessee discharged the primary onus by showing that the share subscribers were regularly assessed to tax, had filed returns, maintained audited books, responded to section 133(6) notices, and routed the transactions through banking channels. On those facts, the court found no substantial question of law arising from the Tribunal's appreciation of evidence. The appeal was dismissed.

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Issues: Whether any substantial question of law arose from the Tribunal's deletion of the addition made under section 68 in respect of share capital and premium received by the assessee.

Analysis: The assessment was reopened after revision under section 263, and the Assessing Officer treated the share application money as unexplained cash credit. The Tribunal, on appreciation of the material, noted that the share subscribers were regularly assessed to tax, had filed returns, maintained audited books, responded to notices under section 133(6), and the transactions had been routed through banking channels. On those facts, the Tribunal held that the assessee had discharged the primary onus regarding the investment.

Conclusion: No substantial question of law arose for consideration, and the deletion of the addition was upheld. The appeal was dismissed.

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