https://www.taxtmi.com/caselaws?id=414428 In a pre-proviso section 68 context, share capital and share premium cannot be added where the assessee proves the identity of share applicants, their creditworthiness and the genuineness of the transactions; proof of the source of the source is not required, and any further inquiry must be directed at the investors. Interest disallowance on advances is also not warranted where the assessee has sufficient interest-free funds and the Revenue fails to establish a direct nexus with borrowed funds. On the stated facts, both additions were deleted and the Tribunal sustained that relief. en-us Wed, 22 Sep 2021 00:00:00 +0530 Mon, 08 Nov 2021 07:00:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=414428 In a pre-proviso section 68 context, share capital and share premium cannot be added where the assessee proves the identity of share applicants, their creditworthiness and the genuineness of the transactions; proof of the source of the source is not required, and any further inquiry must be directed at the investors. Interest disallowance on advances is also not warranted where the assessee has sufficient interest-free funds and the Revenue fails to establish a direct nexus with borrowed funds. On the stated facts, both additions were deleted and the Tribunal sustained that relief. Case-Laws Income Tax Wed, 22 Sep 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=414428