Share capital genuineness upheld; share applicants' credentials verified; no Sec. 68 tax on share premium.

The assessee company demonstrated the genuineness of its share capital and share premium received from several private limited companies. The creditworthiness and identity of the share applicants were verified, with the book value per share exceeding the share premium charged. Since the source of the share application money was already taxed in the applicants' hands, there was no basis for applying Section 68. The Income Tax Appellate Tribunal (ITAT) ruled in favor of the assessee, referencing the Mahaveer Kumar Jain case to prevent double taxation. .....

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