Creditworthiness of investor company cannot rejected merely for declaring low income

ACIT Vs TRN Energy (P) Ltd. & Vice-Versa (ITAT Delhi) A.O. from the books of account of the assessee-company found that assessee-company has received fresh share application money of the impugned amount from Mis. JaisriProperties Exports Pvt. Ltd., The A.O. asked the assessee-company to prove the genuineness of the transaction in the matter with supporting documentary evidence. The assessee-company filed confirmation of the investor Company along with its particulars, bank statement and copy of the income tax return filed with the Department. The A.O. noted that there were high value tra...