2003 (3) TMI 61

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....first question is concerned, it relates to addition of Rs. 3,93,000 on account of the subscription to share capital being held as ingenuine transaction under section 68 of the Income-tax Act, 1961. The law with regard thereto has since been crystallised. Similar question was involved in I.T. Reference No. 20 of 1996) (Hindusthan Tea Trading Co. Ltd. v. CIT [2003] 263 ITR 289 (Cal)) and I.T. Reference No. 78 of 1995 (CIT v. Ruby Traders and Exporters Ltd. [2003] 263 ITR 300 (Cal)) disposed of by this court on March 11 and 12, 2003. The principal ingredient that has to be satisfied is to establish the identity of the subscribers and prove their creditworthiness and the genuineness of the transaction. We have gone through the order of the Asse....

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.... 78 of 1995. The learned Tribunal, however, proceeded on the basis of the ratio decided in CIT v. Stellar Investment Ltd. [1991] 192 ITR 287 (Delhi). According to the learned Tribunal, if the subscribers were not available, in that event, it can be assessed at the hands of such subscribers, not at the hands of the assessee. But this decision was overruled by the Full Bench decision in CIT v. Sophia Finance Ltd. [1994] 205 ITR 98 (Delhi). Therefore, the ratio decided in Stellar Investment Ltd.'s case [1991] 192 ITR 287 (Delhi) is no more good law. Though an S.L.P. was preferred against Stellar Investment Ltd.'s case [1991] 192 ITR 287 (Delhi) and the S.L.P. was dismissed (CIT v. Steller Investment Ltd. [2001] 251 ITR 263), yet the order of....