On submission of proof establishing identity and creditworthiness of shareholder share application money cannot be added to income

Smart Projects (P) Ltd. v. ITO (ITAT Delhi) – Assessee company has duly submitted all  requisite documentary evidences before the Authorities below so as to discharge its onus of establishing the identity and credit worthiness of the shareholders and the genuineness of the transactions. That being so, looked at  from any angle, the addition has wrongly been made in the hands of the assessee company, though the same ought to have been made, if at all, in the hands of the shareholders, as held in ‘Lovely Exports’. INCOME TAX APPELLATE TRIBUNAL, DELHI ITA No. 3045(Del)2010 Ass...