https://www.taxtmi.com/caselaws?id=340760 Issues concern taxation of large share premium and disallowance of expenditure attributable to exempt income. Tribunal applied the threefold pre-amendment test genuineness of the transaction, identity and capacity of the investor and found these satisfied, leading to deletion of addition as unexplained cash credit; where shareholders are alleged bogus, revenue must reopen and assess those shareholders rather than add to the assessees income. A substantial question is admitted on whether the mechanical allocation provision permits disallowance exceeding claimed expenditure, and this issue has been listed for early hearing. en-us Mon, 20 Mar 2017 00:00:00 +0530 Tue, 27 Jan 2026 12:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=340760 Issues concern taxation of large share premium and disallowance of expenditure attributable to exempt income. Tribunal applied the threefold pre-amendment test genuineness of the transaction, identity and capacity of the investor and found these satisfied, leading to deletion of addition as unexplained cash credit; where shareholders are alleged bogus, revenue must reopen and assess those shareholders rather than add to the assessees income. A substantial question is admitted on whether the mechanical allocation provision permits disallowance exceeding claimed expenditure, and this issue has been listed for early hearing. Case-Laws Income Tax Mon, 20 Mar 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=340760