https://www.taxtmi.com/caselaws?id=422745 Share capital can be treated as unexplained income where the assessee fails to establish the identity of the share applicants, their creditworthiness, and the genuineness of the transaction. In proceedings under section 68, these three ingredients must be proved cumulatively on a prima facie basis; failure of any one permits the credit to be added as unexplained. Here, the applicants could not satisfactorily explain the source of funds, one denied the transaction, the alleged financier and portal seller were not proved genuine, and the assessee did not produce the relevant parties despite opportunities. Mere routing through bank accounts was insufficient, so the addition was sustained. en-us Wed, 18 May 2022 00:00:00 +0530 Fri, 20 May 2022 10:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=422745 Share capital can be treated as unexplained income where the assessee fails to establish the identity of the share applicants, their creditworthiness, and the genuineness of the transaction. In proceedings under section 68, these three ingredients must be proved cumulatively on a prima facie basis; failure of any one permits the credit to be added as unexplained. Here, the applicants could not satisfactorily explain the source of funds, one denied the transaction, the alleged financier and portal seller were not proved genuine, and the assessee did not produce the relevant parties despite opportunities. Mere routing through bank accounts was insufficient, so the addition was sustained. Case-Laws Income Tax Wed, 18 May 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=422745