Sec. 68 of Income Tax Act, 1961 – Cash Credit – The issue involved in the appeal of the revenue is the addition of share application money by the AO to the income of the assessee under Section 68 of the Act which additions have been deleted by the first appellate authority and confirmed by the Tribunal.

High Court also dismissed the appeal of the revenue holding that:- It is seen that identity of the creditors were not in doubt. Assessee had furnished PAN, copies of the income tax returns of the creditors as well as copy of bank accounts of the three creditors in which the share application money was deposited in order to prove genuineness of the transactions. In so far credit worthiness of the creditors were concerned, Tribunal recorded that bank accounts of the creditors showed that the creditors had funds to make payments for share application money and in this regard, resolutions were also passed by the Board of Directors of the three creditors – PR. CIT Vs.  AMI INDUSTRIES (INDIA) P. LTD. [2020] 271 TAXMAN 075 (BOM)