https://www.taxtmi.com/caselaws?id=470377 Preference share capital is not unexplained cash credit where the assessee establishes the investor's identity, the genuineness of the subscription, creditworthiness, and both the source of capital and the investor's funds. Relevant evidence included subscription and allotment records, remittance and bank details, audited financial statements, and the underlying commercial arrangement. The investor independently confirmed the investment and explained its funding. After this primary burden is discharged, the Revenue must produce contrary material; unsupported allegations of circular funds or a commercially imprudent investment do not suffice. Tax authorities cannot replace an investor's business judgment with their own. The share capital was therefore satisfactorily explained for Section 68 purposes. en-us Wed, 19 Mar 2025 00:00:00 +0530 Fri, 24 Jul 2026 21:47:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470377 Preference share capital is not unexplained cash credit where the assessee establishes the investor's identity, the genuineness of the subscription, creditworthiness, and both the source of capital and the investor's funds. Relevant evidence included subscription and allotment records, remittance and bank details, audited financial statements, and the underlying commercial arrangement. The investor independently confirmed the investment and explained its funding. After this primary burden is discharged, the Revenue must produce contrary material; unsupported allegations of circular funds or a commercially imprudent investment do not suffice. Tax authorities cannot replace an investor's business judgment with their own. The share capital was therefore satisfactorily explained for Section 68 purposes. Case-Laws Income Tax Wed, 19 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470377