https://www.taxtmi.com/caselaws?id=466397 When a company receives share application money, the assessee must establish the identity, capacity and genuineness of subscribers; if these are proved, the department should seek assessment in the hands of the subscribers rather than treating amounts as undisclosed income. The tribunal found the assessee and the subscribing companies explained the nature and source of funds, with transactions routed through banking channels and the earlier investments evidenced in balance sheets, so mere suspicion by the assessing officer was insufficient to sustain an addition. Where the subscriber's source (and the source of that source) is established, the share capital and share premium cannot be taxed as undisclosed income - decided against revenue. en-us Wed, 13 Mar 2019 00:00:00 +0530 Wed, 04 Feb 2026 16:36:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=466397 When a company receives share application money, the assessee must establish the identity, capacity and genuineness of subscribers; if these are proved, the department should seek assessment in the hands of the subscribers rather than treating amounts as undisclosed income. The tribunal found the assessee and the subscribing companies explained the nature and source of funds, with transactions routed through banking channels and the earlier investments evidenced in balance sheets, so mere suspicion by the assessing officer was insufficient to sustain an addition. Where the subscriber's source (and the source of that source) is established, the share capital and share premium cannot be taxed as undisclosed income - decided against revenue. Case-Laws Income Tax Wed, 13 Mar 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=466397