|Income Tax Appellate Tribunal
Section 68 IT Act | Share Capital from Non-Resident Holding Company Exempt from Addition if Identity, Creditworthiness, and Genuineness Proven : ITAT Delhi
ITAT Delhi rules that share capital received from a non-resident holding company cannot be taxed under Section 68 of the Income Tax Act if the assessee establishes the investor's identity, creditworthiness, and the transaction's genuineness through bank records and FIRC. This sets a precedent for protecting foreign investments from arbitrary additions where documentation is robust.