Non-proving identity, creditworthiness, and genuineness of share ...

Company proves genuineness of share premium; tax can't treat it as unexplained income.

Case Laws Income Tax

November 20, 2024

Non-proving identity, creditworthiness, and genuineness of share premium received cannot be treated as unexplained income if sufficient documentary evidence is provided. Once a company proves existence and authenticity of shareholders, it discharges burden u/s 68. Share premium is a matter of business prerogative, and revenue cannot question its quantum without evidence of collusion or mala fide intent. If an assessee sufficiently establishes identity, creditworthiness, and genuineness of share capital transaction, addition u/s 68 as unexplained cash credit is unsustainable and should be deleted by the Assessing Officer.

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Non-proving identity, creditworthiness, and genuineness of share ...

Company proves genuineness of share premium; tax can't treat it as unexplained income.

Case Laws Income Tax

November 20, 2024

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