In Brief
A company received Rs. 17.6 crore as share capital/premium from multiple investor companies. The Assessing Officer found several investor companies non-existent at given addresses and noted investors had negligible incomes yet invested substantial amounts at unusually high premiums. The company claimed it had discharged its burden under Income Tax Act Section 68 by providing confirmations and Income Tax acknowledgments. The Supreme Court held that merely filing confirmations and banking channel proof is insufficient. The assessee must prove the identity, credit-worthiness, and financial capacity of investors. The AO's field enquiry showing non-existent companies and inability to substantiate funds meant the transaction's genuineness was not established. The Court allowed the revenue's appeal and restored the AO's order adding Rs. 17.6 crore to the company's taxable income.
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