https://www.taxtmi.com/caselaws?id=279859 Share capital and share premium could not be added as unexplained cash credit under section 68 merely because directors of the shareholder companies did not appear to summons when the assessee had produced PAN, returns, bank statements, audited financials, board resolutions, address proofs and confirmations. Payments were made by account payee cheque, no cash deposits were found in the investors' accounts before issuance of the cheques, and the subscribers were tax assessed. The initial burden on the assessee was treated as discharged; any further doubt about investor capacity or source of funds required inquiry at the investor level, and the assessee was not obliged to prove source of source beyond the applicable legal burden. The share premium explanation was also supported by commercial justification. en-us Fri, 26 Oct 2018 00:00:00 +0530 Tue, 09 Apr 2019 05:48:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=279859 Share capital and share premium could not be added as unexplained cash credit under section 68 merely because directors of the shareholder companies did not appear to summons when the assessee had produced PAN, returns, bank statements, audited financials, board resolutions, address proofs and confirmations. Payments were made by account payee cheque, no cash deposits were found in the investors' accounts before issuance of the cheques, and the subscribers were tax assessed. The initial burden on the assessee was treated as discharged; any further doubt about investor capacity or source of funds required inquiry at the investor level, and the assessee was not obliged to prove source of source beyond the applicable legal burden. The share premium explanation was also supported by commercial justification. Case-Laws Income Tax Fri, 26 Oct 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=279859