https://www.taxtmi.com/caselaws?id=775725 The ITAT Delhi held that addition under section 68 on share capital received from shareholders was not justified merely because the shareholders were not produced before the authorities. The assessee provided all relevant documentation, including a valuation report, and issued shares at a price close to the valuation. The capital inflow cannot be treated as income without proper enquiries and cogent evidence proving the transaction to be a sham. Since the investors were genuine and still operating companies, the AO was directed to delete the addition under section 68. The decision was in favor of the assessee. en-us Wed, 04 Jun 2025 00:00:00 +0530 Wed, 30 Jul 2025 08:21:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775725 The ITAT Delhi held that addition under section 68 on share capital received from shareholders was not justified merely because the shareholders were not produced before the authorities. The assessee provided all relevant documentation, including a valuation report, and issued shares at a price close to the valuation. The capital inflow cannot be treated as income without proper enquiries and cogent evidence proving the transaction to be a sham. Since the investors were genuine and still operating companies, the AO was directed to delete the addition under section 68. The decision was in favor of the assessee. Case-Laws Income Tax Wed, 04 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775725