The ITAT held that the assessee had sufficiently established the...

The ITAT held that the assessee had sufficiently established the identity, creditworthiness, and genuineness of the investors for share premium received. The initial onus was on the AO to allege suspicion through independent inquiry, not merely point out lacunae. Investors included reputed entities like Hero Group, Samvardhana Motherson, and Makesense Technologies. Valuation by a SEBI-registered merchant banker cannot be disturbed merely on suspicion. As the assessee qualified as a 'venture capital undertaking' u/s 10(23FB), provisions of Section 56(2)(viib) were inapplicable for share premium received from SEBI-registered venture capital funds. The assessee's appeal was allowed.